XRP News Today: Institutional Adoption Boosts XRP ETFs as Price Plummets

The U.S. cryptocurrency investment landscape is undergoing a seismic shift as 21Shares secures regulatory approval for its XRP Exchange-Traded Fund (ETF), set to debut on the Cboe BZX Exchange under the ticker "TOXR" next week. This milestone marks a pivotal moment for XRP, the third-largest cryptocurrency by market capitalization, as it gains access to a broader institutional investor base through regulated financial products. The 21Shares XRP ETF, which tracks the CME CF XRP-Dollar Reference Rate, joins a growing roster of spot XRP ETFs from firms like Bitwise, Grayscale, and Franklin Templeton, signaling a maturing market for crypto assets in traditional finance.

The ETF's approval follows a streamlined SEC process after the agency's recent reversal of a government shutdown-related backlog, enabling 21Shares to file its S-1/A form on November 7. The fund's infrastructure is bolstered by partnerships with major custodians, including Coinbase Custody, Anchorage Digital Bank, and BitGo Trust, alongside BNY Mellon handling cash custody and administration. These alliances underscore the institutional-grade security and compliance measures now embedded in XRP investment vehicles, addressing prior regulatory concerns. Meanwhile, Bitwise's XRP ETF, launched on November 20, has already attracted $107.6 million in inflows with a 0.34% management fee waived for the first $500 million in assets.

Despite robust inflows, XRP's price performance has lagged, trading below $2 amid a broader crypto market selloff. On November 24, XRP fell to $1.91, a 8.72% drop in 24 hours, as Bitcoin's decline to $84,000 triggered panic-driven liquidations. Analysts attribute this disconnect to structural market fragility, with 41.5% of XRP supply in a loss position and whale selling exacerbating downward pressure. However, optimism persists among market participants. Lacie Zhang of Bitget Wallet predicts a 22% price breakout if Grayscale's GXRP ETF, launching November 24, catalyzes demand. "ETFs provide a cleaner on-ramp for institutions, broadening liquidity and reducing custody friction," said Lawrence Samantha of NOBI, highlighting the long-term benefits of regulated products.

The ETF rollout has also intensified debate over investment strategies. While ETFs offer simplicity and liquidity, critics argue they dilute XRP's utility as a cross-border payment asset. Direct ownership, though more complex, grants full control and lower long-term costs, according to experts. Meanwhile, 21Shares' countdown to launch - sparked by a cryptic "XRP Army, get ready" tweet - has fueled speculation about $10 billion in combined inflows across new XRP products.

Looking ahead, the path for XRP remains intertwined with macroeconomic factors. Analysts caution that institutional flows may take until 2026 to materialize fully, suggesting the ETFs' price impact could be delayed. Yet, the infrastructure for XRP adoption is stronger than ever, with seven spot ETFs now listed and more in the pipeline. As 21Shares prepares to join Grayscale and Franklin Templeton on the exchanges, the asset's journey from regulatory uncertainty to Wall Street acceptance underscores a broader shift in crypto's integration into mainstream finance.