- The 21Shares XRP ETP has experienced an incredible 62% increase in its Net Asset Value (NAV).
- With exceptional performance, the ETP has outperformed conventional indices such as the S&P 500 and the Euro Stoxx.
Since its launch in April 2019, 21Shares’ XRP exchange traded product (ETP) XRP has maintained steady interest among investors. Now experiencing an impressive 62% increase to $16.45, with assets under management valued at $50.4 million, backed by solid investor confidence.
Misunderstanding About XRP ETP
The XRP community has been mired in recent confusion regarding an ETP listed on the Fidelity Investments platform. This incident highlights the attention this investment product has attracted. Although initially misattributed to Fidelity, it was clarified that it is the 21Shares Ripple XRP ETP, formerly recognized as the Amun XRP ETP.
This ETP is primarily intended to offer investors a regulated and secure exposure to XRP. It consolidates itself as an attractive alternative for those looking to take advantage of Ripple’s potential, which is ranked sixth in terms of market capitalization.
Product Data: Beyond the Number
Thoroughly exploring the official 21Shares platform unravels essential data about this ETP. With a total of $50,431,801 ($50.43 million) in assets under management (AUM), it represents the overall value of assets held. Simultaneously, the 3,065,000 outstanding securities indicate the number of outstanding shares or units of the 21Shares XRP ETP.
It is imperative to emphasize that while authorized participants have the ability to create or redeem these outstanding securities, the value of the AUM is directly affected by changes in the price of XRP. Additionally, the current NAV of the product, which stands at $16.45, is calculated by dividing the AUM by the amount of outstanding securities.
21Shares XRP ETP vs. Conventional Indexes
One of the most striking features lies in the exceptional performance of the 21Shares XRP ETP compared to traditional indexes. With outstanding values remaining constant, the increase in XRP’s value directly impacts the ETP’s NAV, which has experienced an outstanding 62% growth since inception in 2019.
Recent data, through Jan. 8, corroborates that the product has outperformed conventional benchmarks such as the S&P 500 and Euro Stoxx over the past year. While the S&P 500 has posted a 19.56% gain, and the Euro Stoxx is up 8.52%, the 21Shares XRP XRP ETP has exhibited a staggering 50.59% increase over that same period.
The remarkable performance of the 21Shares XRP ETP has sparked recommendations within the financial industry for a U.S. asset manager to launch an XRP ETF in the national market. The legal validity surrounding this asset strongly endorses this suggestion. In a recent CNBC interview, the Chief Investment Officer of Valkyrie subtly suggested that the United States might explore the introduction of an XRP ETF after approving a spot BTC ETF.
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