21Shares XRP ETF is a Delaware statutory trust formed on June 3, 2024, that issues shares representing fractional undivided beneficial interests in its holdings of XRP. The trust's investment objective is to track the performance of XRP in U. S. dollars as measured by a pricing benchmark provided by CF Benchmarks Ltd., adjusted for expenses and liabilities. Shares are created and redeemed in baskets of 10,000 units for cash and trade on the Cboe BZX Exchange under the ticker symbol TOXR. The XRP is held at three qualified custodians: Coinbase Custody Trust Company, Anchorage Digital Bank N. A., and BitGo Bank & Trust N. A. The trust operates as a passive, non‑leveraged vehicle and calculates its net asset value each business day based on the benchmark price.

The trust does not generate operating revenue; its value fluctuates with the market price of XRP. Investors realize gains or losses through changes in the share price that reflects the trust's net asset value. To cover its expenses, the trust pays a unitary sponsor fee of 2.5% of its XRP holdings, which is settled in XRP on a weekly basis. The sponsor fee is used to pay ordinary costs such as administration, custody, exchange listing, audit, and other routine expenses. When XRP is sold to satisfy the fee, the trust reports a realized gain; the primary driver of changes in net assets is unrealized appreciation or depreciation of the XRP held. Over time, the trust's net asset value reflects the XRP price movement less the cumulative sponsor fee.

Within the crypto‑asset exchange‑traded product space, 21Shares XRP ETF provides one of the few regulated ways to obtain direct exposure to XRP through a major U. S. exchange. Its structure differs from over‑the‑counter trusts and futures‑based products by offering daily liquidity, transparent pricing, and exchange‑listed shares that trade like ordinary equity. The trust relies on a pricing benchmark that aggregates transaction data from multiple exchanges—Coinbase, Kraken, LMAX Digital, Bitstamp, and Crypto.com—to determine the XRP value used for net asset value calculations. Unlike traditional ETFs, the trust is not registered as an investment company under the Investment Company Act of 1940 and is not classified as a commodity pool under the Commodity Exchange Act, which distinguishes its regulatory treatment. Competitors include other sponsors offering similar crypto‑linked exchange‑traded products, and the trust differentiates itself through its choice of custodians, the comprehensiveness of its benchmark, and its listing on the Cboe BZX Exchange.

The trust's shares are purchased by institutional and retail investors who seek XRP exposure through a brokerage‑accessible vehicle. Transactions occur in the secondary market on the Cboe BZX Exchange, with investors placing orders via standard equity trading platforms. By holding shares, investors gain indirect ownership of XRP without needing to manage private keys, wallets, or custodial arrangements themselves. The vehicle appeals to those who prefer a regulated, transparent, and liquid alternative to holding the token directly. No specific customer names are disclosed in the filing, but the investor base comprises those looking for an exchange‑traded method to invest in XRP.