The XRP community buzzes about the potential launch of an XRP ETF (Exchange-Traded Fund). This follows the recent approval of spot ETFs for Bitcoin and Ethereum by the U.S. SEC, leading XRP enthusiasts to hope for a similar product for their favored cryptocurrency.
However, a prominent community figure, Crypto Eri, has offered a different perspective. She highlights two established XRP-based investment products: XRP Exchange-Traded Products (ETPs) offered by Valour and 21Shares.
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Existing XRP ETP Offerings
Valour launched its XRP ETP on the Nordic Growth Market (NGM) exchange in Sweden in February 2024. In contrast, the 21Shares XRP ETP (AXRP) has been around for a much longer period, having debuted in April 2019.
AXRP currently boasts over $53 million in assets under management and offers investors a secure and regulated way to gain exposure to XRP. Notably, AXRP claims to be fully backed by physical XRP and tracks its price performance. Investors can access AXRP through various financial institutions like Easybank and Fineco.
The Desire for a True XRP ETF
Despite the existence of these ETPs, the XRP community’s interest in a dedicated XRP ETF remains strong. Some argue that ETPs and ETFs are not interchangeable. While ETPs encompass a broader category of exchange-traded investment products, including ETFs, ETNs (Exchange-Traded Notes), and ETCs (Exchange-Traded Commodities), ETFs hold a basket of underlying assets, including cryptocurrencies, and aim to mirror their performance.
While Crypto Eri’s point highlights the availability of regulated investment options for XRP, some community members believe a true XRP ETF would bring additional benefits. They point out that Bitcoin ETPs existed before the introduction of Bitcoin ETFs, but the latter garnered significantly more interest from investors.
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The Road Ahead for XRP
The debate surrounding XRP ETPs versus a potential XRP ETF reflects the ongoing development of the cryptocurrency market and regulatory landscape. While existing ETPs offer a way to invest in XRP, the prospect of an ETF specifically designed for XRP appeals to some investors.
It remains to be seen if and when a regulatory green light will be given for an XRP ETF, but the ongoing discussion underscores the continued interest in XRP as an investment option.
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