XRP ETF Momentum and Institutional Adoption: Assessing 21Shares' TOXR in a Rapidly Expanding Market

The XRP ETF market has emerged as a pivotal force in the cryptocurrency sector, driven by institutional adoption and regulatory clarity. As of late 2025, the U.S. market for XRP ETFs is witnessing unprecedented growth, with inflows nearing $1 billion and weekly institutional contributions exceeding $170 million despite XRP's price hovering below $2.10. At the forefront of this momentum is 21Shares' TOXR ETF, which launched on Cboe's BZX platform on December 11, 2025, with a total expense ratio (TER) of 0.30%-a competitive edge in a market where fees are a critical differentiator. This article evaluates TOXR's strategic advantages, including its custody model, institutional partnerships, and market performance, against competitors like Grayscale's GXRP and Franklin Templeton's XRPZ.

Strategic Advantages of 21Shares' TOXR

1. Competitive Fee Structure and Institutional Trust
While Franklin Templeton's XRPZ offers a lower fee of 0.2% and has waived management fees on the first $5 billion in assets until May 2026, 21Shares' TOXR has carved a niche by leveraging its European expertise in digital asset ETFs. The firm's experience in managing crypto products across the EU has translated into a streamlined U.S. launch, offering institutional investors a regulated, transparent vehicle for XRP exposure. Additionally, TOXR's 0.30% TER aligns with industry benchmarks, balancing affordability with operational efficiency.

2. Multi-Custody Model for Enhanced Security
A key differentiator for TOXR is its multi-custody approach, partnering with Coinbase, Anchorage Digital Bank, and BitGo to secure XRP holdings. This contrasts with Franklin Templeton's XRPZ, which relies solely on Coinbase Custody Trust Company. By diversifying custody solutions, 21Shares mitigates counterparty risk and reinforces institutional confidence-a critical factor in an asset class still grappling with regulatory scrutiny.

3. Institutional Adoption and Cross-Border Infrastructure
XRP's utility in global cross-border payments has been a cornerstone of its institutional appeal. Over 100 financial institutions, including Santander and Bank of America, now utilize XRP-powered systems to settle transactions across 55 countries. This infrastructure not only validates XRP's real-world use case but also creates a flywheel effect: as more institutions adopt XRP for payments, demand for ETFs like TOXR naturally increases.

Market Performance and Projected Growth

The XRP ETF landscape is highly competitive, with Grayscale's GXRP and Franklin Templeton's XRPZ dominating early inflows. On their launch day, these two ETFs collectively attracted $164 million, pushing XRP's price to $2.19 and reducing exchange-held liquidity by 29%. By late November 2025, total assets under management (AUM) across XRP ETFs reached $628 million, with TOXR poised to capture a significant share as it prepares for its Cboe listing. Analysts project that sustained inflows of $40–$60 million daily could drive XRP ETF AUM to $6.7 billion by the end of 2026. This growth is underpinned by structural shifts in XRP's on-chain metrics: institutional wallets now hold over 10 million XRP tokens, while exchange-reserved liquidity has declined, signaling a shift toward long-term accumulation.

Comparative Analysis: TOXR vs. Competitors

While Franklin Templeton's XRPZ benefits from a lower fee and a grantor trust structure that offers direct XRP ownership, 21Shares' TOXR excels in institutional-grade custody and operational transparency. Grayscale's GXRP, meanwhile, has leveraged its brand reputation to attract $67.4 million in AUM as of November 2025, but its lack of a multi-custody model may deter risk-averse investors. TOXR's European pedigree and diversified custody partners position it as a safer bet for institutions prioritizing security and compliance.

Conclusion: A Maturing Market and TOXR's Role

The XRP ETF market is entering a maturation phase, with institutional adoption and regulatory approvals reshaping the asset's trajectory. 21Shares' TOXR stands out by combining competitive fees, robust custody solutions, and a proven track record in digital asset ETFs. As XRP's market capitalization approaches $135 billion, the structural impact of ETF inflows-reducing exchange liquidity and stabilizing price volatility-mirrors patterns seen with Bitcoin ETFs. With analysts forecasting a potential price range of $2.50–$3.00 for XRP by 2026, TOXR is well-positioned to capitalize on this momentum, offering investors a regulated gateway to a rapidly evolving asset class.