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WisdomTree Investments, a leading global asset manager, has launched the WisdomTree Physical XRP (XRPW) exchange-traded product (ETP) across Deutsche Börse Xetra, SIX Swiss Exchange, and Euronext Paris and Amsterdam.
With a management expense ratio of just 0.50%, the XRPW ETP stands as Europe’s most competitively priced option for XRP exposure.
Key Features of the XRPW ETP
- Ticker: XRPW
- Objective: Tracks the spot price of XRP, providing investors direct exposure to the asset.
- Asset Security: Fully backed by physically held XRP, stored in cold storage by regulated custodians.
- Launch Motivation: Aims to cater to investors seeking cost-efficient diversification through XRP, a prominent altcoin.
Understanding XRP and Its Ledger
XRP is the native token of the XRP Ledger (XRPL), a decentralized blockchain designed for fast, low-cost transactions.
Key Features of XRPL:
- Consensus Mechanism: Uses Proof-of-Association, which is energy-efficient compared to Proof-of-Work systems.
- Transaction Speed: Processes transactions within 3-5 seconds, making it ideal for cross-border payments.
- Origin: Launched in 2012 to provide a payment-focused blockchain solution.
XRP in Multi-Asset Portfolios
According to Dovile Silenskyte, Director of Digital Assets Research at WisdomTree:
“With risk-on sentiment building, altcoin exposures like XRP could outperform a standard Bitcoin and Ether allocation. XRP enhances portfolio diversification while reducing reliance on a single token.”
She emphasized the low correlation between cryptocurrencies and traditional financial assets, highlighting XRP’s role in strengthening multi-asset investment strategies.
Record DEX Activity Fuels XRP Surge
- Recent XRP Performance:
XRP’s price surged 120%, reaching $1.12—its highest since November 2021. - DEX Activity Boost:
The increase coincides with record-breaking DEX activity on the XRPL network.- On November 15, 2024, decentralized exchange volume on XRPL hit $3.5 million, driven by the new automated market maker (AMM) DEX launched earlier in May 2024.
The spike in participation from traders and liquidity providers has fueled renewed interest in XRP, reinforcing its significance within the cryptocurrency ecosystem.
WisdomTree’s Crypto Journey
WisdomTree has a strong presence in Europe’s crypto market, with multiple ETPs listed since the launch of its first product, the WisdomTree Physical Bitcoin ETP, in December 2019. The firm’s commitment to innovation continues to empower investors seeking digital asset exposure.
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