The XRP community is eagerly awaiting the launch of an XRP ETF, especially since the U.S. SEC has recently approved spot ETFs for Ethereum and Bitcoin. Enthusiasts believe a similar investment product for XRP could positively impact its market price, mirroring the effects seen with Ethereum and Bitcoin. Consequently, prominent community figure Crypto Eri has highlighted the significance of these discussions.
Existing XRP-Based Investment Products
Crypto Eri noted that there are already substantial XRP-based investment products available, specifically those issued by Valour and 21Shares. She pointed out that these products are fully asset-backed, addressing concerns about security and regulation. Additionally, Eri referenced comments from Yoshitaka Kitao, chairman and president of SBI Holdings, who hinted at a forthcoming cryptocurrency ETF supported by an American issuer.
Despite these developments, Eri questioned what might still be lacking in the current offerings. Valour launched its XRP ETP on Sweden’s Nordic Growth Market (NGM) exchange on February 21, 2024. In contrast, the 21Shares XRP ETP (AXRP) debuted in April 2019 and currently manages $53,741,755 in assets. As of May 24, AXRP has a net asset value of $15.24 and a year-to-date return of negative 8.40%.
This ETP claims to be fully backed by physical XRP and aims to mirror XRP’s performance. Investors can access AXRP through various financial institutions, including Easybank, finanzen.net Zero, Fineco, and over ten other banks and brokerages.
XRP ETPs vs. ETFs
Despite Eri’s emphasis on existing XRP ETPs, the desire for XRP ETFs remains strong. One X user argued that Eri’s claim of two existing XRP ETFs is inaccurate since the cited examples are ETPs, not ETFs.
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The user noted that Bitcoin ETPs existed before Bitcoin ETFs, yet the latter garnered more attention. Eri’s spotlight on existing XRP ETPs relies on the fact that ETPs are a broad category, including various investment products traded on exchanges, such as ETFs, ETNs, and ETCs.
Related article: XRP Investment Insights: Future Value Scenarios at $3.84
On the other hand, an ETF is a type of ETP that holds a collection of assets, including crypto, primarily tracking the performance of the assets they hold.
While existing XRP ETPs by Valour and 21Shares provide secure and regulated investment methods, the XRP community continues to advocate for an ETF, hoping it will attract more significant attention and impact XRP’s market price positively.
