21Shares Builds XRP Case Around Utility, ETFs, and Fixed Supply

Regulatory Clarity Anchors 21Shares’ XRP Thesis

XRP investors now have a four-part framework for assessing the asset’s prospects after crypto asset manager 21Shares published a new investment case. The firm’s investment strategist Maximiliaan Michielsen identified regulatory clarity, institutional access, measurable utility, and fixed supply as the pillars, with the potential value depending on blockchain settlement reaching greater scale.

Regulatory certainty anchors the framework after nearly five years of litigation between Ripple Labs and the Securities and Exchange Commission (SEC) ended in August 2025. The SEC’s joint dismissal of the appeals left the district court’s final judgment in effect, including a $125 million civil penalty and an injunction barring Ripple from violating the registration provisions of the Securities Act of 1933.

The firm summarized its central question in a Sept. 11 post on X, writing:

“Every digital asset needs two things: a reason to exist, and a reason to appreciate.”

It presented the legal dispute as resolved while treating the other three pillars as developments that remain in progress.

XRP ETFs Broaden Access as Institutional Positions Shift

21Shares counts seven U.S. spot XRP exchange-traded funds (ETFs) that began trading from November 2025, although REX-Osprey’s XRPR launched Sept. 18, 2025, as the first U.S.-listed ETF offering spot XRP exposure. The analysis says the products collected $1.3 billion during their first month and recorded a 55-day inflow streak. More current data placed cumulative net inflows at $1.68 billion through Sept. 4, and the total crossed $1.70 billion by Sept. 9 despite uneven daily movement.

Institutional demand has moved in both directions, matching 21Shares’ cautious reading of ETF adoption. Goldman Sachs held $153.8 million in disclosed exposure at the end of 2025 before exiting during the first quarter. The bank returned by June 30, when Goldman led disclosed spot XRP ETF holders with $87.45 million of the $183.5 million tracked.

Form 13F positions disclose qualifying securities held by large investment managers rather than XRP owned directly on the ledger. These holdings can support market making, arbitrage, hedging, or longer-term allocation. Consequently, wider ETF ownership expands regulated access without establishing why each institution holds the shares or how long those positions may remain.

XRPL Utility and Fixed Supply Face a Value-Capture Test

Network activity forms the third pillar of the investment case, with 21Shares estimating that XRPL moved close to half a trillion dollars in onchain value over 12 months. It also placed RLUSD near $1.6 billion and tokenized assets around $4 billion. Token Terminal data, however, put circulating RLUSD at about $2.4 billion on Sept. 12 after more than 50% growth in a month. Evernorth’s July count reached about $4 billion in tokenized real-world assets across more than 500 products.

Ledger upgrades give institutions more control for issuing and managing tokenized assets on XRPL. Official specifications show that Multi-Purpose Tokens support supply caps, approved-holder lists, transfer restrictions, freezes, and clawbacks. Those features allow issuers to place compliance and asset-management controls directly within the token structure rather than relying entirely on offchain processes.

XRP’s supply framework provides the final pillar, with all 100 billion tokens created when the ledger launched. The public XRP Ledger uses XRP for transaction costs and liquidity, while validated transactions destroy a small amount. 21Shares estimates that more than 14 million XRP has been burned, and scheduled escrow releases can alter circulating supply without increasing the original cap.

A central risk lies in how network activity affects the native asset over time. Institutions can use XRPL while holding XRP only briefly, so higher settlement volume does not automatically create sustained token demand. 21Shares therefore treats XRP as a position on tokenized settlement reaching scale while acknowledging that adoption could grow faster than value accrues to XRP holders.