The debut of the 21Shares XRP ETF has brought renewed attention to FalconX’s acquisition of 21Shares and how this deal increases the likelihood of an XRP supply squeeze.
In particular, the conversation gained momentum after the ETF’s launch on December 11th. Amid the discussion, community members revisited the Oct. 22 announcement that FalconX would be acquired. 21 stocks.
21Shares Debuts XRP ETF After FalconX Acquisition
By way of background, FalconX already serves over 2,000 institutional clients and operates a wide range of businesses covering OTC trading, liquidity services, and crypto derivatives. With this acquisition, FalconX plans to combine its large trading network with 21Shares’ track record in building and managing crypto ETFs across global exchanges.
Just weeks after FalconX completed the transaction, 21Shares is now introduced The XRP ETF is traded on the Cboe BZX exchange under the ticker TOXR. The fund began operations after the SEC approved its S-1 filing. In particular, TOXR offers investors a regulated and easy way to gain exposure to XRP without managing it themselves.
After the launch, speculation spiked across X, with multiple analysts claiming that the acquisition could set the stage for a FalconX acquisition. XRP supply shock. Most of these community participants believe that the acquisition and the debut of the ETF will create a situation where demand can grow faster than supply.
How will the 21Shares XRP ETF deplete the FalconX pool?
“Well, that’s it for the rest of Falcon X’s dark pool of XRP.” Jake Claver, a prominent figure in the XRP community and CEO of DAG, said: Mr. Claver’s comment: claim It’s FalconX pool of XRP could be significantly depleted from TOXR demand.
Well, Falcon X’s dark pool of XRP remains… https://t.co/jgEUVphQCw
— Jake Claver, QFOP (@beyond_broke) December 12, 2025
For context, FalconX manages a rich OTC liquidity pool holding billions of XRP from whales, institutions, and large traders. These pools support large-scale private trading without impacting prices on public exchanges. FalconX also handles derivatives, payments, and credit services for its institutional network, making it a primary source of XRP exposure for major corporations.
At the same time, 21Shares relies on actual XRP holdings to back the ETF. the Launch of TOXR It required millions of XRP upfront. If ETFs are attractive strong influxas assets under management grow, the company will need to purchase more tokens, perhaps hundreds of millions.
21Shares currently operates under FalconX, so you can withdraw directly from FalconX’s OTC reserves. This creates a fast and efficient loop where Investors buy ETF shares, brokers redeem them, and FalconX supplies them of XRP. This process moves more XRP from private liquidity pools into long-term ETF storage, removing those tokens from daily circulation.
Possibility of XRP supply shock?
Members of the XRP community believe that this entire process could tighten supply over time. Importantly, ETFs provide easy investing for pension funds, retirement plans, and other traditional investors. enter XRP may be in high demand.
As FalconX Over-the-counter reserves If it collapses, buyers could move to public exchanges where supply is still much lower. This could be similar to Bitcoin’s surge following the ETF’s launch in early 2024, where heavy inflows could support a rally above $100,000, pushing the price higher.
However, it is important to note that broader economic trends could slow demand or weigh on prices. Nevertheless, recent on-chain activity (including the latest AuM $1 billion milestone Investments from existing XRP ETFs support the idea that large buyers will continue to build positions.
