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XRP-Backed ETP Debuts in Europe: WisdomTree Expands Crypto Offerings

07 mins

  • WisdomTree launches Physical XRP ETP across major European exchanges with a 0.50% management fee, featuring institutional-grade security through dual custody and cold storage protection.
  • As of November 2024, multiple firms, including 21Shares, are pursuing XRP ETF approval in the US, with SEC facing a June 2025 deadline for current applications.

WisdomTree has launched its latest Physical XRP (XRPW) ETP, which is listed across major European exchanges, including Deutsche Börse Xetra, Swiss Stock Exchange SIX, and Euronext exchanges in Paris and Amsterdam. The new ETP boasts a management expense ratio of 0.50 percent, establishing itself as Europe’s most cost-effective XRP exposure vehicle.

The XRPW ETP represents a strategic expansion of WisdomTree’s cryptocurrency offerings, providing investors with a secure and regulated pathway to XRP investment. Built on a robust institutional-grade framework, the product maintains 100 percent physical backing of XRP, secured through a dual-custody model with professional cold storage protection.

At the core of the offering lies XRP, a digital asset operating on the XRP Ledger (XRPL), which processes transactions within three to five seconds through its energy-efficient Proof-of-Association consensus mechanism. Since its inception in 2012, XRP has positioned itself as a sustainable alternative to Bitcoin, particularly excelling in cross-border payments and microtransactions.

XRP ETP Aims to Diversify Crypto Portfolios

Dovile Silenskyte, Director of Digital Assets Research at WisdomTree, underscores the strategic importance of launching at a strategically favorable moment. The risk-on sentiment is gaining momentum, suggesting that altcoin investments such as XRP might deliver more robust performance than Bitcoin and ether. XRP’s inclusion in a diversified crypto investment strategy could enhance overall returns. Silenskyte stated:

With risk-on sentiment building, altcoins like XRP could outperform a standard Bitcoin and Ether allocation […] reducing exposure to a single token. Cryptocurrencies, making up over 1% of the market portfolio, enhance diversification and may improve risk-adjusted returns in a multi-asset strategy,

Alexis Marinof, WisdomTree’s Head of Europe, underscores the firm’s extensive experience managing physically-backed ETPs, pointing to their global assets under management exceeding $100 billion across ETFs and ETPs. The new XRP ETP joins WisdomTree’s comprehensive lineup of cryptocurrency products across 15 European countries.

Grayscale Investments is preparing to launch the United States’ first XRP trust. Brad Garlinghouse, Ripple’s CEO, views recent developments as inevitable progress, stating:

Was (pleasantly) surprised to see this news […] though inevitable, as well?! As I’ve said before, with XRP having regulatory clarity in the U.S. and other countries, I expect it’s only a matter of time for this space to grow.

XRP ETF Race Heats Up as Gary Set to Depart

The launch comes amid growing institutional interest in XRP investment vehicles. Several major players are pursuing regulatory approval for XRP ETFs in the U.S. following the departure of SEC Chair Gary Gensler on January 20. The crypto industry hopes the next SEC chair will create more appealing crypto-friendly stances.

As of November 2024, multiple asset managers have entered the competition for the first U.S.-approved XRP ETF. 21Shares submitted their application on November 1, 2024, proposing to list Core XRP Trust shares on the Cboe BZX Exchange, with Coinbase Custody Trust Company serving as custodian.

Speculation about potential collaboration between BlackRock and Ripple for an XRP ETF has further energized the market. Garlinghouse suggests such partnerships could benefit the entire XRP community, potentially attracting institutional investors and strengthening market confidence.

The SEC faces a June 2025 deadline to respond to current XRP ETF applications, with market analysts closely monitoring regulatory developments and their potential impact on the cryptocurrency investment landscape. 

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