CoinShares has introduced a new Ripple Exchange-Traded Product (ETP), marking its fourth physical crypto ETP launch this year. The CoinShares Physical XRP (XRPL) is set to list on the SIX Swiss Exchange, offering investors direct exposure to Ripple (XRP) with a Total Expense Ratio (TER) of 1.50%.
Key Features of the XRPL ETP
- Physical Replication: Each unit of the ETP is backed by 40 XRP at launch, ensuring direct XRP price tracking.
- Professional-Caliber Product: Developed after thorough feasibility and liquidity assessments.
- Targeted for European Investors: Designed to meet the demands of CoinShares’ European client base.
Executive Insights
Townsend Lansing, Head of ETPs at CoinShares:
"We prioritize feasibility and market demand before launching products. This ensures liquidity and aligns with professional standards."
Frank Spiteri, Chief Revenue Officer:
"The digital asset ecosystem is expanding rapidly. Our 2021 strategy focuses on diversifying offerings, including assets like XRP that resonate with investors."
Ripple’s Market Context
SEC Controversy and Recovery
- SEC Lawsuit (2020): The U.S. Securities and Exchange Commission classified XRP as an unregistered security, leading to a lawsuit against Ripple Labs.
- Market Impact: Despite 21Shares removing XRP from its HODL ETP, XRP surged 750% between December 2020 and April 2021 (from $0.2 to $1.7).
CoinShares’ Expanding Crypto ETP Suite
XRPL is CoinShares’ eighth ETP, joining recent launches like:
- Physical Litecoin (LITE) (April 2021)
- Other physically backed crypto ETPs
FAQs
1. What is the TER for the XRPL ETP?
The Total Expense Ratio is 1.50%, covering management and operational costs.
2. How does the ETP track XRP’s price?
It uses physical replication, with each unit backed by 40 XRP held in secure custody.
3. Why did CoinShares choose XRP despite regulatory challenges?
CoinShares assesses demand and liquidity before launching products. XRP’s strong recovery and European investor interest justified the launch.
4. Can U.S. investors buy the XRPL ETP?
Currently listed on the SIX Swiss Exchange, it’s primarily targeted at European markets. U.S. investors should check local regulations.
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