# 21Shares XRP ETF

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/21Shares XRP ETF).

## Overview

21Shares XRP ETF is a U.S.-listed commodity-based exchange-traded product structured as a trust that provides investors exposure to XRP through shares that are created and redeemed in large blocks (“Baskets”). Shares trade on the Cboe BZX Exchange under the ticker TOXR (listed since December 11, 2025), allowing investors to access XRP price exposure via a traditional brokerage account. The Trust issues shares in exchange for in-kind deposits of XRP, which are held by custodians and may be transferred or sold to pay sponsor fees and Trust expenses. The product’s economics and operating model are driven by XRP custody, the creation/redemption mechanism, and ongoing fees/expenses rather than operating revenue from selling goods or services.

## Products & services

• 21Shares XRP ETF (TOXR) shares providing XRP price exposure
• Creation/redemption of Shares via in-kind XRP “Baskets”
• XRP custody arrangements to safeguard Trust-held XRP
• Secondary-market liquidity via Cboe BZX listing
• Trust administration and expense payment mechanism (incl. XRP sales)

- **XRP-linked exchange-traded shares (TOXR)** (70%) — Exchange-traded shares designed to reflect XRP exposure, trading on Cboe BZX.
- **Primary market creation/redemption (Baskets)** (20%) — In-kind issuance and redemption process where authorized participants exchange XRP for large blocks of shares.
- **Trust operations (custody, administration, expense funding)** (10%) — Custody of XRP and operational processes including paying sponsor fees and Trust expenses, potentially via XRP transfers/sales.

- 21Shares XRP ETF (TOXR) shares providing XRP price exposure
- Creation/redemption of Shares via in-kind XRP “Baskets”
- XRP custody arrangements to safeguard Trust-held XRP
- Secondary-market liquidity via Cboe BZX listing
- Trust administration and expense payment mechanism (incl. XRP sales)

## Customers

The Trust’s end investors are primarily market participants seeking XRP exposure in an exchange-traded wrapper, including retail brokerage clients and institutional allocators using ETFs/ETPs for portfolio implementation. Liquidity and price discovery are supported by broker-dealers and market makers trading TOXR on Cboe BZX. In the primary market, authorized participants (APs) and other institutional counterparties create and redeem shares via Baskets, typically to arbitrage premiums/discounts and manage inventory. The sponsor/seed capital investor also participates at launch by purchasing seed creation baskets to start secondary-market trading.

- **Retail brokerage investors** (primary) — Buy TOXR shares on-exchange to gain XRP exposure without directly holding XRP or managing wallets.
- **Institutional allocators (RIA, hedge funds, family offices)** (secondary) — Use TOXR for tactical or strategic XRP exposure, rebalancing, and operational simplicity versus direct crypto custody.
- **Authorized participants and liquidity providers** (primary) — Create/redeem Baskets in-kind with XRP to keep market price aligned with NAV and to facilitate trading liquidity.
- **Sponsor/seed capital investor** (emerging) — Provides initial seed creation baskets to enable listing and early secondary-market liquidity.

- Retail investors seeking XRP exposure via a brokerage-listed product
- Institutional investors allocating to crypto within ETF/ETP mandates
- Authorized participants creating/redeeming Baskets for arbitrage and liquidity
- Market makers and broker-dealers providing secondary-market liquidity
- Seed capital investor providing initial basket creation to launch trading

## Geography

The Trust is U.S.-listed and its shares trade on the Cboe BZX Exchange, making the United States the primary market for distribution and trading access. Operationally, the Trust’s exposure is to the global XRP market because the underlying asset is priced and traded across international crypto venues, even if the shares are U.S.-listed. Custody and service-provider arrangements (custodians, administrator, transfer agent, and broker/dealer ecosystem) create operational dependencies that may span multiple jurisdictions. No authoritative revenue-by-geography disclosure was provided in the excerpts, so a quantified geographic revenue split is not presented.

- United States listing and trading venue: Cboe BZX (TOXR)
- Economic exposure tied to global XRP market pricing and liquidity
- Cross-border operational dependencies via custodians and service providers
- Regulatory and market conditions in the U.S. can affect access and demand
- Global crypto market disruptions can transmit into TOXR pricing and spreads

## Strategy

The Trust’s strategy is to maintain a straightforward XRP exposure vehicle with a functioning creation/redemption mechanism so secondary-market prices track underlying XRP value. Operational priorities center on secure custody, reliable processing of in-kind basket activity, and ensuring expenses and sponsor fees are funded (including via XRP transfers or sales when needed). Maintaining exchange listing standards and supporting liquidity through the broker-dealer/AP ecosystem are critical to keeping spreads competitive and minimizing premiums/discounts. The Trust also relies on ongoing SEC-compliant disclosure and risk-factor governance consistent with its effective Form S-1 registration.

- Keep TOXR trading aligned with underlying XRP via Basket arbitrage
- Maintain robust XRP custody and operational controls
- Support secondary-market liquidity on Cboe BZX through AP ecosystem
- Fund sponsor fees and Trust expenses efficiently (incl. XRP sales if needed)
- Sustain SEC reporting and disclosure discipline post-Form S-1 effectiveness

## Risks

The Trust’s core risk is XRP market risk: XRP price volatility directly drives NAV and can lead to sharp drawdowns for shareholders. Operational and custody risks are central because the Trust holds XRP with custodians; failures in safeguarding, settlement, or key management could impair assets or disrupt creations/redemptions. Liquidity and market-structure risks can arise if AP activity or secondary-market liquidity weakens, potentially widening spreads and increasing premiums/discounts to NAV. Regulatory and legal risks are material for crypto-linked products, including changes in U.S. rules affecting trading, custody, disclosures, or the classification of cryptoassets, which could constrain operations or investor access.

- **Risk factors incorporated by reference from effective Form S-1** [high] — The 10-Q states there were no material changes from the risk factors disclosed in the Form S-1 (333-282942) effective December 10, 2025, indicating the prospectus risk set remains applicable.
- **Expense funding may require transferring or selling XRP** [medium] — The Trust may transfer or sell XRP (potentially facilitated by custodians) to pay sponsor fees and Trust expenses, which can create tracking differences and execution/market-impact risk.

- XRP price volatility directly impacts share value and investor outcomes
- Custody/operational failure could impair Trust-held XRP or processing
- Creation/redemption disruption can cause premiums/discounts and wider spreads
- Regulatory changes for crypto ETPs may restrict operations or demand
- Counterparty/service-provider dependence (custodians, APs, brokers) adds risk
- Potential need to sell/transfer XRP to pay expenses can create tracking drag
- Concentration risk if few APs/market makers support liquidity
- Cybersecurity risk affecting custodians or trading infrastructure

## Accounting

Financial reporting for an XRP trust is driven by measurement and presentation of the Trust’s XRP holdings and changes in their value, which can create significant period-to-period volatility in reported results and NAV-related metrics. The creation/redemption process is primarily in-kind (proceeds from basket issuance consist of XRP), so accounting focuses on units outstanding, XRP received/delivered, and any gains/losses or expenses recognized when XRP is sold to fund fees and liabilities. Fair value measurement of XRP and related valuation sources are critical, as small methodology differences can affect NAV and comparability. Expense recognition (sponsor fees and Trust expenses) and the timing of any XRP sales to pay them can affect tracking versus spot XRP and reported operating results.

- Fair value measurement of XRP drives NAV and reported volatility
- In-kind Basket creations/redemptions affect units and XRP balances
- XRP sales/transfers to pay fees can create realized gains/losses and tracking drag
- Expense accrual timing (sponsor fees, Trust expenses) impacts period results
- Valuation source selection for XRP can affect comparability and disclosures

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*Last updated: 2026-08-11T04:46:16.758838+00:00*