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Switzerland-based 21Shares AG, considered one of the pioneers when it comes to the issuance of cryptocurrency exchange-traded products (ETPs), has announced the launch of an $XRP ETP in Swiss francs (CHF) on the SIX Swiss Exchange.<\/p>\n
The SIX Swiss Exchange is based in Zurich and is Switzerland\u2019s main stock exchange. It trades other securities such as Swiss government bonds and derivatives such as stock options. The exchange is owned by the SIX Group, an \u201cunlisted public limited company itself controlled by 122 banks or financial institutions.\u201d<\/p>\n
21Shares\u2019 physically-backed XRP ETP, the 21Shares Ripple XRP ETP, is touted as the \u201cworld\u2019s first Ripple ETP\u201d and trades under the ticker AXRP<\/a>. It aims to track the investment results of XRP minus fees, with each share of the ETP having 30.11650072 XRP in it.<\/p>\n The product has a 2.5% management fee and is already listed on a number of other exchanges, including the Boerse Stuttgart and Euronext Amsterdam, and Euronext Paris. According to CryptoCompare\u2019s February 2022 Asset Report<\/a>, it held 76.7 million XRP in it, having assets under management close to $55 million.<\/p>\n It is notably not the only ETP tracking the value of XRP. Last year, CoinShares launched<\/a> its CoinShars Physical XRP (XRPL) product, which is listed on the SIX Swiss Exchange with a total expense ratio of 1.5%. The product aims to replicate the performance of the cryptoasset, with each unit being backed by 40 tokens at launch.<\/p>\n 21Shares\u2019 expansion of AXRP came as it launched seven new products on the exchange, including the \u201cworld\u2019s first physically-backed\u201d ETPs for Cardano ($ADA), Solana ($SOL), and Polkadot ($DOT).<\/a> The firm notes that the ETPs differ from exchange-traded funds (ETFs) are these are \u201cdebt securities issued by a Special Purpose Vehicle (SPV) instead.\u201c<\/p>\n –><\/p>\n –><\/p>\n The product\u2019s expansion also comes after reports suggested the U.S. Securities and Exchange (SEC) Commissioner Hester Pierce believes that the regulator will not get the outcome it\u2019s looking for in its lawsuit against Ripple over the XRP token.<\/p>\n The SEC\u2019s\u00a0lawsuit against Ripple and two of its executives alleges they \u201craised over $1.3 billion through an unregistered, ongoing digital asset securities offering.\u201d\u00a0It negatively impacted the price of XRP, as after the lawsuit was announced most cryptocurrency exchanges started delisting the token to avoid any repercussions, affecting its liquidity.<\/p>\n Fox Business journalist Eleanor Terrett, citing an anonymous source close to the SEC, has said Peirce expressed privately she believes the SEC won\u2019t get a favorable outcome from the lawsuit.<\/a><\/p>\n Ripple\u2019s lawyers, according<\/a> to legal expert Jeremy Hogan, expect the lawsuit to be over sometime between August 26 and November 18 of this year.<\/p>\n DISCLAIMER<\/strong> IMAGE CREDIT<\/strong>
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The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.<\/em><\/p>\n
Featured image via\u00a0Pixabay<\/a><\/em><\/p>\n<\/p><\/div>\n