21Shares

XRP ETF Landscape Heats Up: 21Shares Joins the Race as Combined Volumes Surge Past $400M

21Shares joins the XRP ETF race with TOXR approval as combined volumes surge past $400M. With only 60B XRP in circulation and ETFs accumulating 200M+ tokens, liquidity dynamics are reshaping institutional crypto access.

The Ripple Effect

— 5 min read
XRP ETF Landscape Heats Up: 21Shares Joins the Race as Combined Volumes Surge Past $400M

21Shares secures approval for TOXR ticker while multiple XRP ETFs demonstrate strong institutional demand amid limited token supply

21Shares has secured approval from the U.S. Securities and Exchange Commission for its XRP ETF, which will begin trading on the Cboe BZX Exchange under ticker symbol "TOXR" next week. This development marks another significant milestone in the rapidly expanding XRP ETF ecosystem, where institutional demand is creating substantial market dynamics against a backdrop of limited token circulation.

The approval follows 21Shares' filing on November 7, which utilized the SEC's streamlined process, making it part of a historic wave of XRP ETF launches that have collectively generated hundreds of millions in trading volume within weeks.

Current XRP ETF Market Performance

The XRP ETF landscape has experienced unprecedented growth, with analysts projecting $150-$200 million in combined daily volume by November 26 when combining all issuers. Spot XRP ETFs pulled in $164 million in net inflows on November 24, marking the second-largest single-day total since the funds began trading.

Leading the charge, Canary Capital's XRP holdings reached 146.1 million tokens valued at $283 million by November 24, while Bitwise XRP in Trust held 59.6 million tokens valued at $115.4 million by November 21. The performance demonstrates that established ETF products accumulated over 200 million XRP tokens before Franklin Templeton and Grayscale launches.

Franklin Templeton's XRPZ brought in $62.59 million on its first day, while Grayscale's GXRP led with $67.36 million in inflows. First-hour trading across newly launched XRP ETFs saw $13.94 million in combined turnover, with Bitwise leading at 195,631 shares worth $4.54 million.

XRP Supply Dynamics: Limited Circulation Creates Scarcity

Understanding the supply dynamics is crucial to appreciating why XRP ETF demand matters. XRP has a fixed total supply of 100 billion tokens, all created at launch in 2012, with no additional tokens able to be mined.

Currently, approximately 60.3 billion XRP are in circulation, representing about 60% of the total supply. However, this circulation figure tells only part of the story. As of June 2024, about 40.7 billion XRP remain in Ripple's escrow accounts, with the company releasing up to 1 billion XRP monthly through programmed releases.

The controlled supply mechanism means an average of only ~300 million XRP are effectively entering the market each month, creating a relatively constrained supply environment even as institutional demand grows through ETF purchases.

How XRP ETFs Compare to Bitcoin and Ethereum Products

The XRP ETF performance stands in stark contrast to the broader crypto ETF market. In November 2025 alone, Bitcoin ETFs bled $3.79 billion in outflows, with BlackRock's IBIT leading the exodus with over $2 billion in redemptions. Investors have pulled $3.5 billion from US-listed Bitcoin ETFs so far in November, almost equaling the previous monthly record.

Meanwhile, Ethereum ETFs recorded $96.67 million in net inflows for November 24, 2025, a fraction of XRP's performance. The divergence is notable: ETH ETFs have received only $1.2 billion in net inflows year-to-date, compared to $18 billion for Bitcoin ETFs.

For context, when Bitcoin ETFs launched, they achieved an unprecedented $4.6 billion in first-day volume, while Ether ETFs saw $600 million in volume in just the first half of their first trading day. Canary Capital's XRPC generated $245 million in net inflows on its first day, surpassing the net inflows of any current spot Bitcoin ETF at launch.

Why Liquidity Matters for XRP ETFs

Liquidity is fundamental to ETF functionality and investor accessibility. Secondary market liquidity is an important measure of ETP and ETF functionality and a big part of why ETPs and ETFs are convenient for investors to hold in general.

By aggregating investor funds, ETFs can infuse liquidity into the XRP market, fostering greater stability and reliability. However, crypto ETFs face unique challenges. Crypto ETPs have higher NAV premiums than ETFs that reference highly liquid assets, which suggests that arbitrage is difficult between crypto markets and equities markets.

The limited XRP circulation relative to ETF demand creates important dynamics. With established ETF products having already accumulated over 200 million XRP tokens and seven consecutive days of positive flows for XRP ETF products, the funds represent a meaningful portion of liquid XRP supply.

Analyst Chad Steingraber compared current XRP ETF performance to early Bitcoin ETF activity, estimating that a cumulative $1 billion day would require just over $83 million per fund across 12 active XRP funds. His projections suggest a five-day run of billion-dollar inflows could absorb more than 2.2 billion XRP from the market in under seven days.

XRP/Ripple Analysis: Strategic Implications

The ETF expansion represents a significant shift for Ripple and XRP adoption. The 21Shares XRP ETF will track the CME CF XRP-Dollar Reference Rate, providing transparency and a solid methodology for institutional investors. Coinbase Custody, Anchorage Digital Bank, and BitGo Trust will serve as custodians, with BNY Mellon handling cash custody and administration.

The regulatory clarity driving these approvals follows years of uncertainty. The XRP ETF launches came almost five years after the US Securities and Exchange Commission filed a lawsuit against Ripple, which was officially ended in August with a $125 million settlement.

For XRP's price potential, the reallocation of capital from speculative Bitcoin inflows to utility-driven altcoins like XRP marks a structural shift, with XRP's role in cross-border payments and lower volatility explaining its appeal to risk-averse investors.

With additional products from Bitwise, 21Shares, CoinShares, WisdomTree, and Amplify scheduled to go live by late November, the concentration of launches within a two-week window creates conditions for sustained institutional XRP accumulation.

Looking Ahead

The 21Shares approval adds to an ecosystem where Franklin Templeton manages $1.6 trillion in assets and influences over 13,000 advisory firms, providing distribution advantages. As these institutional-grade products mature, the interaction between limited XRP circulation and growing ETF demand will likely continue driving market dynamics.

The success of early XRP ETF launches, combined with regulatory clarity and institutional custody solutions, positions this asset class for continued growth even as Bitcoin and Ethereum ETFs face headwinds.

DISCLAIMER: This newsletter is for informational purposes only and does not constitute investment advice, advertising, or a recommendation to buy, sell, or hold any securities. This content is not sponsored by or affiliated with any of the mentioned entities. Investments in cryptocurrencies or other financial assets carry significant risks, including the potential for total loss, extreme volatility, and regulatory uncertainty. Past performance is not indicative of future results. Always consult a qualified financial professional and conduct thorough research before making any investment decisions.

Sources

Primary Sources:

  1. SEC Filing Documents
  2. ETF Performance Data
  1. Market Data and Supply Analysis
  1. Comparative ETF Analysis
  1. Academic and Institutional Research
  1. Historical Context

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