Following the press release, Coinshares Announcement, Europe’s largest digital asset investment company, launched a new exchange-traded product (ETP) called “Coinshares Physical XRP”. The commodity will be listed under the exchange code XRPL of the regulated Swiss Exchange SIX.
This will be the fourth new product launched by Coinshares this year. The company provided Bitcoin, Ethereum and Litecoin products.
XRPL was built using Coinshares Physical’s institutional ETP platform, Coinshares Physical, and each XRPL unit will be backed by 40 XRP at launch. ETP aims to provide XRP income risk to investors.
Coinshares Chief Revenue, Frank Spiteri Say,
“The digital asset ecosystem is huge and still growing at an alarming rate. As we continue to diversify the product line in 2021, we are focusing on providing investment risk to these assets and networks that resonate most with our European customer base.”
In the ongoing SEC litigation, several exchanges stopped trading and investing in XRP before launching the product. In fact, although cryptocurrencies have rallied since then, altcoins appeared on the chart in free fall when the case first came to light in December.
As the market is in an uptrend overall, investment products will continue to grow as investors hope to diversify their investment portfolios using different asset classes, taking into account liquidity factors. According to Token Sharing, the total amount of digital assets exceeds the market cap of $2T. Coinshares specifically touched the $5 billion mark.
However, Coinshares’ biggest product is still Bitcoin ETP, followed by Ethereum ETP, which was launched in January and early February respectively. The company also continues emission Litecoin ETP launched on April 6, 2021.
Last August, Coinshares’ crypto ETP broke the $1 Billion AUM mark. A good crypto market and growing investor appetite have fueled the aforementioned growth. Coinshares reached $5 billion in cross ETP platform AUM in eight months.
This release also shows how eager ETP issuers are to meet the needs of investors in the European market. In fact, according to the report, the London ETC team will also list the actual Litecoin ETP on Deutsche Börse’s XETRA market on April 14, 2021.
But the entire Atlantic Ocean is another matter.
Although the European market is relatively small, it has made impressive progress in encrypting EPT and set benchmarks in a recent statement. Deutsche Borse analysts stated that Bitcoin is performing well and will become one of the most traded products in the ETP space in 2020.
The global market reacts differently to these digital products. Swiss regulator FINMA allows all encrypted EPTs to be listed, while the UK’s FCA banned the sale of Encrypted ETN. However, Coinshares claims that due to this development, retail investors will try to buy and sell such products on unregulated exchanges and will face greater risks in the process.