8-K: 21Shares XRP ETF Terminates CF Benchmarks Agreement

21Shares XRP ETF is terminating its licensing agreement with CF Benchmarks for the CME CF XRPDollar Reference Rate, effective August 31, 2026, and plans to transition to FTSE index data.

Summary

• The 21Shares XRP ETF, through its Sponsor 21Shares US LLC, has provided notice to terminate its Pricing Benchmark Licensing Agreement with CF Benchmarks Ltd.
• This termination is effective August 31, 2026.
• The agreement was for the use of the CME CF XRPDollar Reference Rate (Pricing Benchmark) to value the Trust's shares and calculate its net asset value.
• The Sponsor is transitioning to a new benchmark provider, FTSE International Limited (FTSE).
• A new licensing agreement with FTSE is expected to be entered into on or about August 24, 2026.
• FTSE will provide a license for FTSE index data for similar purposes as the previous agreement.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event; while a change in a critical data provider introduces some transition risk, the proactive replacement with a reputable firm mitigates immediate concerns.

Positives

• Transition to a new benchmark provider suggests a strategic move to potentially enhance data quality or diversify reliance.
• The new agreement with FTSE is expected to be perpetual and worldwide, similar to the previous one, ensuring continued operational capability.
• FTSE is described as experienced in calculating and administering digital asset indices, implying a competent replacement.

Negatives

• Termination of a material definitive agreement, even with a replacement, introduces a period of transition risk.
• The reliance on a single benchmark provider, even with a new one, can still pose concentration risk.
• The specific details of the new FTSE index data and its suitability for the ETF's valuation are not yet fully disclosed.

Risks

• Potential for disruption in daily valuation and NAV calculation during the transition period between benchmark providers.
• The new benchmark data from FTSE may not be as robust or as widely accepted as the previous CME CF XRPDollar Reference Rate.
• Any unforeseen issues with the new licensing agreement with FTSE could impact the ETF's operations.
• The unaligned effective date of termination (August 31, 2026) and the expected new agreement date (August 24, 2026) creates a very narrow window for transition.

Future Outlook

The ETF is transitioning to a new benchmark provider, FTSE International Limited, with a new licensing agreement expected to be in place by August 24, 2026, to ensure continued operation and valuation of its shares.

Management Comments

• The Sponsor has elected to terminate the Pricing Benchmark Licensing Agreement pursuant to its terms in connection with its broader transition to a new benchmark provider.

Industry Context

StockSavvy.ai notes that the transition of benchmark providers for digital asset ETFs is becoming more common as the industry matures and seeks more robust or specialized data sources. This move by 21Shares XRP ETF reflects a broader trend of reassessing data dependencies.

Stakeholder Impact

• Shareholders: Potential for minor short-term volatility in NAV calculation if the transition is not perfectly smooth, but long-term impact depends on the quality of the new benchmark.
• ETF Operations: Requires careful management of the transition to ensure continuity of service and accurate valuation.
• CF Benchmarks: Loss of a client and a benchmark usage agreement.
• FTSE: Gain of a new client and expansion of its digital asset index data services.

Next Steps

• Enter into a licensing agreement with FTSE International Limited on or about August 24, 2026.
• Ensure seamless transition of benchmark data from CF Benchmarks to FTSE by August 31, 2026.
• Continue to market and operate the 21Shares XRP ETF using the new FTSE index data.

Key Dates

Keywords

XRP ETF, 21Shares, CF Benchmarks, FTSE, Benchmark, Licensing Agreement, Termination, Digital Assets, Net Asset Value, ETF