Asset management firm WisdomTree Investments has issued the WisdomTree Physical XRP (XRPW) exchange-traded product (ETP). This new ETP, which is listed on Deutsche Borse Xetra, the SIX Swiss Exchange, and Euronext Paris and Amsterdam marketplaces, focuses on providing cost-effective lynx with a management expense ratio of 0.50%, making it the most competitive, closely priced EU ETP in the history of XRP.
WisdomTree’s XRPW security is entirely backed by the equal stock of XRP, redeposited in cold storms by non-under-regulated custodians. The product offers exposure to the spot value of Ripple using an institutional-grade framework, which is advantageous to investors due to the asset’s dual custody model. By cutting costs and improving security, XRPW provides institutional and retail investors a straightforward, safe environment to invest in Ripple.
XRP’s Impact on Sustainable Payments and Portfolios
The XRP Ledger (XRPL), XRP’s native blockchain, uses a Proof-of-Association consensus mechanism for validation. Unlike energy-intensive Proof-of-Work systems, XRPL supports efficient, low-energy transactions completed in three to five seconds. Developed in 2012, XRPL was built explicitly for payments, offering faster, sustainable alternatives to traditional blockchain networks like Bitcoin.
Ripple facilitates direct transactions without central intermediaries, enabling fast cross-border payments and microtransactions. Freely traded in global markets, Ripple efficiently bridges different currencies. WisdomTree emphasizes XRP’s potential in multi-asset portfolios, citing its diversification benefits and reduced correlation with traditional asset classes.
Dovile Silenskyte, WisdomTree’s director of digital assets research, emphasized XRP’s potential in multi-asset portfolios. Altcoin exposures like Ripple could outperform standard Bitcoin and Ethereum allocations, offering diversification benefits due to cryptocurrencies’ low correlation with traditional assets and improving risk-adjusted returns.
Alexis Marinof, Head of Europe at WisdomTree, stated, their new launch expands our range of physically-backed cryptocurrency ETPs, offering investors a solution to diversify their multi-asset portfolios. Cryptocurrency ETPs provide an efficient, regulated investment route and are increasingly preferred for accessing digital assets. Leveraging two decades of experience managing physically-backed ETPs, WisdomTree oversees over $100 billion in assets globally, ensuring our cryptocurrency ETP investors benefit from our global scale and resources.
XRP’s Recent Surge and XRPL Activity
The recent surge in activity witnessed on the Ripple Ledger’s decentralized exchange (DEX) has raised the value of XRP to $1.14, up 120% within the time range of November 2021. The AMM DEX of XRPL had a $3.5 million daily volume on November 15th, further highlighting the increased interest of traders and liquidity providers.
Over the past week, over 900 XRP whale wallets scooped tokens amounting to over $1 billion, which shows how confident these key investors have become. It has also contributed to the 122% price increase of Ripple, with the critical level of support being $1.00. Recurrent purchases have helped to smooth out the movement of Ripple, which would have been strongly affected by the series of pullbacks the market has experienced, showing bullish tendencies for cryptocurrency.
WisdomTree Physical (XRPW) is Europe’s most affordable XRP ETP, outperforming ETC Group Physical XRP and CoinShares Physical XRP in expense ratios. There are now nine cryptocurrency products in WisdomTree’s ETP range, with $1.1 billion in assets. WisdomTree Physical (XRPW) offers the best expense ratio of 0.50% when compared to ETC Group’s GXRP (1.95%) and CoinShares’ XRPL (1.50%), making it the most cost-effective ETP for investors interested in Ripple in the European market.
The growing use of Ripple in making and receiving payments pushes WisdomTree to expose its WisdomTree Physical (XRPW) to investors in a regulated and efficient way. This addresses the market’s need for crypto ETPs and demonstrates the expanding use of Ripple on the DeFi stage.
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