An XRP exchange-traded product (ETP) by 21Shares (formerly Amun) has appeared on Fidelity Investments’ digital platform, stirring debates within the XRP community. While some interpret this as a new offering, investigations reveal it’s an existing Swiss-listed ETP—not a U.S. launch.
Rising Interest in XRP Investment Products
The discovery follows growing speculation about XRP exchange-traded funds (ETFs), fueled by recent developments:
- Grayscale’s Reintroduction of XRP: The asset manager re-added XRP to its Grayscale Digital Large Cap Fund (GDLC) after Judge Analisa Torres’ July 2023 ruling affirmed XRP’s non-security status.
- Legal Clarity Advantage: XRP’s unique regulatory position in the U.S. has spurred calls for a spot ETF, akin to pending Bitcoin ETFs.
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Key Details About the 21Shares XRP ETP
Product Origin:
- Launched in April 2019 by Amun AG (now 21Shares) on the SIX Swiss Exchange.
- Ticker: AXRP; physically backed by XRP holdings.
- Assets under management: $51.3 million (as of latest data).
U.S. Availability:
- Not registered in the U.S., but custody services are provided by Coinbase Custody.
- Jane Street and other U.S. firms are authorized participants.
Misconceptions Clarified:
- Fidelity did not create a new XRP ETP; it merely lists the existing 21Shares product.
- The ETP has traded since 2019 and rebranded under 21Shares in 2020.
Why an XRP ETF Matters
- Institutional Access: ETFs/ETPs simplify institutional investment without direct crypto custody.
- Market Liquidity: Products like AXRP could amplify XRP’s liquidity and price stability.
- Regulatory Benchmark: Approval of an XRP ETF could set precedents for other altcoins.
FAQs
Q: Is Fidelity launching an XRP ETF?
A: No. The platform lists 21Shares’ existing Swiss ETP, not a U.S. ETF.
Q: How does AXRP work?
A: It tracks XRP’s price and is 100% backed by physical XRP held by Coinbase Custody.
Q: Could the U.S. approve an XRP ETF soon?
A: While XRP’s legal clarity helps, no filings exist yet. Bitcoin ETF approvals may pave the way.
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Conclusion
The 21Shares XRP ETP’s presence on Fidelity underscores XRP’s institutional traction but isn’t a new offering. For now, advocates await a U.S.-registered XRP ETF to unlock broader investment avenues.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct independent research before investing.