Europe’s largest digital asset investing company, Coinshares, is now news for the introduction, under the name “Coinshare Physical XRP,” of a new Exchange Traded Product (ETP). The goods are listed on the controlled SIX Swiss Exchange under the ticker XRPL.
This is the fourth product to be released by Coinshares this year. Bitcoin, Ethereum and Litecoin have already been available.
XRPL is set up through the institutional ETP, Physical Coinshares network of Coinshares and each XRPL unit is supported by 40 XRPs at launch. The aim of this ETP is to provide an exposure to XRP to investors.
Chief Revenue Officer of Coinshares, Frank Spiteri,
“The digital asset ecosystem is vast and still growing at breakneck speed. As we continue to diversify our product offering in 2021, we are focused on providing investment exposure to those assets and networks that resonate most with our European client base.”
This launch takes place a few months after many exchanges, during the current SEC litigation, have arrested XRP trade and investment. Indeed, though the crypto has stabilized since then, in December after the lawsuit was first uncovered, the altcoin noted a free fall on the charts.
Due to the overall market boom, investment products continue to expand as investors aim to diversify their asset class portfolios while taking into account the liquidity aspect. The digital assets have totally exceeded the $2T market cap, according to Coinshares. Coinshares touched the $5B mark, in particular.
The biggest product from Coinshares remains, however, the Bitcoin ETP, followed by the ETP from Ethereum, both of which launched in January and February respectively. On 6 April 2021 the company also started its Litecoin ETP.
Coinshares saw their Crypto-ETPs cross the $1B AUM mark in August of last year. This growth was driven by a successful crypto-market and the appetites of investors. Coinshares has successfully crossed $5b in AUM over eight months on its ETP platforms.
This launch also shows how ETP issuers are hurrying to meet European markets’ demands.
In reality, the ETC group in London will list a physical Litecoin ETP on the XETRA market of Deutsche Borse on 14 April 2021.
However, this was a different story in the Atlantic.
Even if they are smaller on European markets, crypto-ETPs make persuasive progress and set benchmarks. Latest reports by Deutsche Borse have highlighted the success of Bitcoin, which was one of the most traded ETP items in 2020.
Globally, markets have reacted to these digital goods differently. FINMA, the Swiss regulator, gave a nod to approve all crypto-ETP listings while the United Kingdom FCA prohibited the selling of crypto-ETNs. However, Coinshares said that retail investors would seek to trade such products on unregulated exchanges owing to such developments and would be exposed to greater risks in the process.