8-K: 21Shares XRP ETF Switches Benchmark Provider to FTSE

21Shares XRP ETF announces a new benchmark licensing agreement with FTSE International Limited, replacing CF Benchmarks Ltd. for its XRP reference rate.

Summary

• 21Shares XRP ETF has entered into a new Benchmark Licensing Agreement with FTSE International Limited, effective August 20, 2026.
• This agreement replaces the previous licensing agreement with CF Benchmarks Ltd. for the CME CF XRP-Dollar Reference Rate New York Variant.
• Beginning August 27, 2026, the Trust will use the FTSE XRP Index (Pricing Benchmark) to value its shares and calculate its net asset value.
• The agreement with FTSE is for a one-year initial term, with automatic one-year renewals unless terminated.
• Additionally, Amendment No. 1 to the Sponsor Agreement changes the payment timing of the Sponsor Fee from weekly to at least quarterly in arrears, payable in XRP.
• The Trust Agreement has also been amended to reflect these changes, including the use of the FTSE XRP Index and the revised Sponsor Fee payment schedule.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a neutral to slightly positive development, as the change in benchmark provider is a necessary operational adjustment rather than a strategic growth initiative.

Positives

• Secures a new, reputable benchmark provider (FTSE International Limited) for the XRP reference rate.
• Ensures continuity of operations for the 21Shares XRP ETF by replacing the previous benchmark provider before its agreement expires.
• Adjusts the Sponsor Fee payment schedule to a less frequent, at least quarterly basis, potentially improving cash flow management for the Trust.

Negatives

• The change in benchmark provider is a reactive measure following the termination of a previous agreement, indicating potential underlying issues or strategic shifts.
• The specific terms and financial implications of the new FTSE agreement are not fully detailed in the filing.

Risks

• Potential for operational disruptions or calculation errors during the transition to the new benchmark provider.
• The new benchmark provider's index may not be as widely recognized or accepted by market participants as the previous one.
• FTSE International Limited's experience with digital asset indices, while noted, is a key factor in ensuring reliable pricing.
• The automatic renewal clause could lead to continued reliance on FTSE even if performance or terms become less favorable.

Future Outlook

The Trust will now value its shares and calculate its net asset value using the FTSE XRP Index, starting August 27, 2026. The Sponsor Fee payment schedule has been adjusted to at least quarterly in arrears.

Management Comments

• The filing does not contain direct quotes from management, but rather describes the executed agreements and amendments.

Industry Context

StockSavvy.ai notes that the digital asset ETF space is highly competitive, and maintaining reliable and recognized benchmarks is crucial for investor confidence and operational integrity. The shift from CME CF XRP-Dollar Reference Rate to FTSE XRP Index reflects the evolving landscape of digital asset data providers and the need for ETFs to adapt to changes in their underlying data sources.

Corporate Governance

Related Party Transactions

• The amendment to the Sponsor Agreement details a change in the payment terms for the Sponsor Fee, which is a transaction between the Trust and its Sponsor (an affiliate).

Stakeholder Impact

• Shareholders will experience a change in the reference rate used for NAV calculation, which could subtly affect perceived value if the new index behaves differently.
• The change in Sponsor Fee payment timing from weekly to at least quarterly may impact the Trust's cash flow management, though the total fee amount is not stated to change.

Next Steps

• The Trust will commence using the FTSE XRP Index for valuation and NAV calculation on August 27, 2026.
• Sponsor Fee payments will now be made at least quarterly in arrears.

Key Dates

Keywords

XRP ETF, Benchmark, FTSE, Licensing Agreement, Sponsor Fee, Trust Agreement, Digital Assets, Cryptocurrency