The Swiss-based 21Shares AG, regarded as a pioneer in the issuing of cryptocurrency exchange-traded products (ETPs), has announced the introduction of a $XRP ETP in Swiss francs (CHF) on the SIX Swiss Exchange.
The SIX Swiss Exchange, headquartered in Zurich, is Switzerland’s primary stock exchange.
Other securities traded include Swiss government bonds and derivatives such as stock options.
The SIX Group owns the exchange, which is a “unlisted public limited corporation controlled by 122 banks or financial institutions.”
Single Assets: #Cardano, #Polkadot, #Ripple & #Solana
Indexes: HODL, HODLV, HODLX
❗BONUS: Our #Bitcoin ETP is now also available in JPY
Learn more here: https://t.co/2UqJJoDAm7 pic.twitter.com/24PRyKZ81x
— 21Shares (@21Shares) March 10, 2022
The 21Shares Ripple XRP ETP, a physically-backed XRP ETP, is billed as the “world’s first Ripple ETP” and trades under the ticker AXRP.
It intends to track the performance of XRP investments minus costs, with each share of the ETP containing 30.11650072 XRP.
The product has a management fee of 2.5 percent and is already listed on a number of other exchanges, including the Boerse Stuttgart, Euronext Amsterdam, and Euronext Paris.
According to CryptoCompare’s February 2022 Asset Report, it controlled 76.7 million XRP and had $55 million in assets under management.
It is notable that it is not the only ETP that tracks the value of XRP.
CoinShares debuted its CoinShars Physical XRP (XRPL) product last year, which has a total expense ratio of 1.5 percent and is listed on the SIX Swiss Exchange.
At debut, each unit is backed by 40 tokens, with the product aiming to match the performance of the cryptoasset.
The expansion of AXRP by 21Shares coincided with the introduction of seven new products on the exchange, including the “world’s first physically-backed” ETPs for Cardano ($ADA), Solana ($SOL), and Polkadot ($DOT).
ETPs differ from exchange-traded funds (ETFs) in that they are “debt securities issued by a Special Purpose Vehicle (SPV) instead.”
The product’s expansion also comes following news that US Securities and Exchange Commission (SEC) Commissioner Hester Pierce believes the SEC will not receive the outcome it seeks in its case against Ripple over the XRP token.
According to the SEC’s complaint, Ripple and two of its executives “raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.”
It had a detrimental influence on the price of XRP since, following the announcement of the lawsuit, most cryptocurrency exchanges began delisting the token to prevent any ramifications, reducing its liquidity.
An anonymous source close to the SEC, Peirce privately stated her belief that the SEC will not receive a good conclusion from the litigation.
According to legal expert Jeremy Hogan, Ripple’s lawyers expect the action to be resolved between August 26 and November 18 of this year.