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This will be Coinshares’ fourth new product release this year. The company now sells Bitcoin, Ethereum, and Litecoin.
XRPL was created with Coinshares’ institutional-grade ETP network, Coinshares Physical, and will be backed by 40 XRP at launch. This ETP is designed to give investors yielding exposure to XRP.
Coinshares’ Chief Revenue Officer, Frank Spiteri, said,
“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 announcement comes just a few months after multiple markets suspended XRP trading and investments in the wake of the pending SEC litigation. In reality, though the cryptocurrency has since stabilised, the altcoin experienced a free fall on the charts when the lawsuit was first revealed in December.
Because of the market’s general bullishness, investment goods are continuing to expand as buyers seek to diversify their holdings of various asset groups while holding liquidity in mind. According to Coinshares, digital assets, in totality, crossed the $2T market cap. Coinshares, specifically, touched the $5B mark.
The Bitcoin ETP remains Coinshares’ most popular offering, followed by the Ethereum ETP, both of which were introduced in January and February, respectively. The firm also went on to launch its Litecoin ETP on 6 April 2021.
Coinshares’ crypto-ETPs passed the $1 billion AUM threshold in August of last year. The said expansion has been fueled by a strong cryptocurrency demand and rising investor interest. In a span of eight months, Coinshares has managed to cross $5B in AUM on its ETP platforms.
This introduction also demonstrates how ETP issuers are scrambling to meet the needs of European investors. According to rumours, the London-based ETC company will also list a physical Litecoin ETP on the Deutsche Borse’s XETRA Market on 14 April 2021.
However, the story has been somewhat different on the other side of the Atlantic.
About the fact that European economies are smaller, they are making significant strides with crypto-ETPs and setting standards. According to a new survey from the Deutsche Borse, Bitcoin performed well and was among the top-traded items in the ETP market in 2020.
Global markets have reacted differently to these digital goods. The Swiss regulator, FINMA, has approved all crypto-ETP listings, while the FCA in the United Kingdom has prohibited the selling of crypto-ETNs. Coinshares, on the other hand, claims that as a result of such trends, institutional buyers will continue to trade such goods on unregulated markets, exposing themselves to greater risks.