Four years ago, a little-known investment vehicle entered the scene. The 21Shares XRP ETP (AXRP). It tracked XRP, the 6th largest cryptocurrency, and offered investors a regulated and secure way to tap into the digital asset’s potential.
Despite initial skepticism, AXRP has quietly amassed a loyal following and delivered impressive returns, outperforming established market indexes.
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In the early days, confusion surrounded AXRP’s presence on Fidelity’s platform. While some mistakenly attributed its launch to the financial giant, AXRP was an independent offering, faithfully mirroring XRP’s performance since its creation in 2019.
This dedication to physical backing and regulated exposure to XRP, the sixth-largest cryptocurrency by market cap, proved a winning formula.
A closer look at AXRP’s financials reveals the extent of its success. Over $50 million in assets under management (AUM) speaks volumes about investor confidence. The 3 million outstanding securities represent the total shares currently in circulation, and while their number can fluctuate, the AUM dynamically adjusts with XRP’s price movements.
Crucially, AXRP’s net asset value (NAV) – $16.45 per share at the time of writing – directly reflects XRP’s value. This isn’t just mirroring, as AXRP has amplified XRP’s gains, boasting a 62% increase in NAV since its launch. This outstanding performance extends beyond mere tracking, as AXRP’s 50.59% gain over the past year dwarfs the S&P 500’s 19.56% and the Euro Stoxx’s 8.52%.
The success of AXRP, coupled with recent legal clarity surrounding XRP, is fueling calls for a U.S. XRP ETF. XRP began its road to legal clarity in July after a victory over the SEC. Since then, Ripple has come out victorious over the SEC on two occasions with the tendency of further wins.
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For the XRP ETF applications, Experts like Valkyrie’s Chief Investment Officer Steve McClurg see a potential green light following the approval of a spot BTC ETF applications, paving the way for wider access to XRP within the U.S. market.
The 21Shares XRP ETP has quietly become a reliable and secure haven for XRP enthusiasts. Its impressive returns, even during periods of market uncertainty, have made it a favorite among those seeking alternative investment opportunities.
With legal clarity and the possibility of XRP ETF filings in the United States on the horizon, AXRP’s future appears bright, poised to offer even greater access to the potential of this digital asset.
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