XRP Price: 21Shares Launches New ETF But Traders Stay on Sidelines

TLDR

• XRP’s funding rate dropped to -20% on Thursday, the lowest since October 10, reaching levels that typically signal extreme bearish positioning in derivatives markets
• US-listed XRP ETF daily trading volumes rarely exceed $30 million, with assets under management stuck near $3.1 billion compared to Solana ETFs’ $3.3 billion
• XRP Ledger total value locked fell to $68 million, its lowest level in 2025, while Stellar blockchain holds $176 million despite having 93% smaller market cap
• 21Shares launched its XRP ETF (TOXR) on CBOE exchange on Thursday, joining recent launches from Grayscale, Canary Capital, and REX Shares
• Open interest in XRP futures remains flat at $2.8 billion, down from $3.2 billion in late November, showing traders are reluctant to increase positions

XRP dropped 9% over two days after facing rejection at $2.18 on Tuesday. The price fell below $2, creating turbulence in derivatives markets.

The funding rate on XRP perpetual futures fell to -20% on Thursday. This marks the lowest level since the October 10 crash.

Negative funding rates mean sellers pay buyers to maintain open positions. This shows a lack of demand from bullish traders.

In normal market conditions, the funding rate ranges from 6% to 12%. Longs typically cover this fee to account for the cost of capital.

Deeply negative funding rates are rare and usually don’t last long. Some analysts view them as potential reversal signals.

Most historical examples appeared during flash crashes rather than extended price corrections. The current situation differs because leverage appetite has fallen across the board.

Aggregate open interest in XRP futures stood at $2.8 billion on Thursday. This number remained unchanged from the prior week.

Leveraged positions have not recovered the $3.2 billion level seen in late November. XRP has dropped 45% since reaching $3.66 in July.

Declining ETF Activity

Part of the weak appetite for bullish XRP positions connects to declining activity in US-listed XRP ETFs. Traders entered November with strong expectations.

Inflows and trading activity dropped sharply after just three weeks. Assets under management remain stuck near $3.1 billion according to CoinShares data.

Solana ETFs hold $3.3 billion in assets for comparison. Daily volume on US-listed XRP ETFs rarely exceeds $30 million.

This low volume dampens interest from institutional desks. Fading demand for the XRP Ledger adds to holder frustration.

XRP Ledger Faces Competition

More than $1 billion worth of Ripple USD has been issued on Ethereum. The XRP Ledger holds just $235 million of the stablecoin.

Total value locked on the XRP Ledger dropped to $68 million, its lowest level of 2025. This signals declining engagement with the chain’s decentralized applications.

The Stellar blockchain holds $176 million in TVL. This comes despite XLM’s market cap being 93% smaller than XRP’s $121.8 billion.

Competing blockchains like BNB Chain and Solana continue strengthening their positions in the decentralized applications ecosystem. Limited activity on XRP Ledger creates a cycle where investors have fewer incentives to hold XRP.

21Shares launched its XRP ETF on CBOE exchange Thursday morning with the ticker symbol TOXR. The fund tracks the fourth-largest cryptocurrency by market capitalization.

Coinbase, Anchorage Digital Bank, and BitGo will serve as custodians for the 21Shares XRP ETF. Over the past several weeks, other firms debuted XRP ETFs including Grayscale, Canary Capital, and REX Shares.

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