Crypto exchange-traded product (ETPs) provider 21Shares is set to shake up the European crypto scene by introducing a fully backed XRP ETP product on the NASDAQ Stockholm.
According to an official press release by the company, the offering is designed to facilitate investors’ access to these popular digital assets with local currency exposure across the European region.
Make Digital Assets More Accessible and Affordable
The introduction of the fully backed XRP ETP comes alongside similar offerings, including a Bitcoin Core ETP and a Solana Staking ETP. The move signals the firm’s growing commitment to providing diverse crypto investment options for individual and institutional investors. For a company that oversees at least $7.5 billion in assets, 21Shares has positioned itself to meet the growing demand for cryptocurrency exposure in Europe.
The decision to bring a Bitcoin, Solana, and fully backed XRP ETP to the European market through the NASDAQ Stockholm aims to make digital assets more accessible and affordable, with management fees as low as 0.21%. According to the company’s statement, each ETP will be fully backed by its respective cryptocurrency, meaning investors will have a direct link to the asset’s performance and not just a paper promise.
Offering Includes Bitcoin and Solana
For investors who choose the Solana (ASOL) ETP, there will be a significant bonus for staking yields. This goes way above what traditional investment products offer since investors can earn passive income by holding their stake in the product. Similarly, the Bitcoin (CBTC) and fully backed XRP ETP (AXRP) come with attractive features, including low fees, regulatory security, and direct exposure to two of the biggest names in crypto.
US Still in Uncertainty
The move by 21Shares to enter the European market through the NASDAQ Stockholm comes at a time when Europe is moving at full throttle through a clear regulatory framework via the MiCA Markets in Crypto-Assets) while the US is still thriving in uncertainty. The situation in Europe creates a perfect environment for companies like 21Shares that are interested in capitalizing on the situation. In the meantime, US-based traditional finance investors like Fidelity are returning to conventional ETFs thanks to existing regulatory roadblocks.
Conclusion
With companies like 21Shares making bold moves and entering the Nordic market via the NASDAQ Stockholm, there is clear evidence that the appetite for regulated, accessible crypto investments is stronger than ever. The introduction of the fully backed XRP ETP, in addition to the Bitcoin and Solana counterparts, means European investors could have a competitive edge over their American counterparts, who are still waiting for the government to clear regulatory roadblocks.
Frequently Asked Questions (FAQs)
What is a crypto ETP?
Exchange-traded products (ETPs) are a type of security that tracks financial instruments or underlying securities on stock exchanges. In the case of crypto ETPs, they track the price of the underlying digital asset from day to day and intraday.
How are the prices of ETPs derived?
The prices of crypto ETPs are derived from the underlying investments they track. They are designed to replicate the return of an underlying asset or benchmark.
How many types of ETP exist?
Within the European market, ETPs are divided into the following categories: ETFs (Exchange-Traded Funds), ETCs (Exchange-Traded Commodities), and ETNs (Exchange-Traded Notes).
Can I convert my cryptocurrency into ETPs?
Yes, it is possible to convert your crypto holdings into an ETP through institutional or professional investors or through a network of Authorized Participants. However, investors would need to open an account with one of the APs and have undergone KYC/AML on both the legal entity investing and the cryptocurrency itself.
Appendix: Glossary of Key Terms
XRP: XRP is a cryptocurrency and the native token of the XRP Ledger. It is designed to facilitate fast, secure, and low-cost international payments, particularly for financial institutions.
ETPs: An investment vehicle that tracks the performance of an underlying asset, like Bitcoin, Ethereum, or XRP, and is traded on regulated exchanges.
NASDAQ Stockholm: A regulated market and stock exchange in Stockholm, Sweden, owned and operated by NASDAQ, Inc.
References
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