tl;dr
WisdomTree's European division has introduced a new exchange-traded product (ETP) based on XRP, available in Germany, Switzerland, France, and the Netherlands. This has led to a slight increase in XRP's price. While an official XRP ETF is anticipated, ETP offerings, such as this one, serve as an int...
WisdomTree Launches XRP-Based ETP in Four EU Countries, Leading to Price Increase
WisdomTree's European division has introduced a new exchange-traded product (ETP) based on XRP, available in Germany, Switzerland, France, and the Netherlands. This has led to a slight increase in XRP's price. While an official XRP ETF is anticipated, ETP offerings, such as this one, serve as an interim solution. WisdomTree's previous success with Bitcoin and Ethereum ETPs in the UK further underscores their market strategy. Despite the potential approval of an XRP ETF in the US, it may not directly impact WisdomTree's European operations. For now, the XRP-based ETP remains the primary offering in this market.
WisdomTree, one of the Bitcoin ETF issuers in the US, announced that its European branch is offering an exchange-traded product (ETP) based on XRP. This product is currently available in four EU countries, which has led XRP’s price to jump slightly. ETPs are a common issuer strategy to earn revenue without ETF approval, but Europe will not necessarily approve one even if the US does so.
“The WisdomTree Physical XRP ETP offers a simple, secure, and low-cost way to gain exposure to XRP, one of the largest cryptocurrencies by market capitalization. Backed 100% by XRP, XRPW is the lowest-priced XRP ETP in Europe, providing direct spot price exposure,” the announcement claimed. The possibility of an official XRP ETF is growing with the current bull market, and Ripple CEO Brad Garlinghouse considers it “inevitable.” Still, it hasn’t happened yet, and ETP offerings allow issuers to somewhat address customers’ requirements. BitWise, which has also filed for an XRP ETF in the US, recently acquired a European ETP issuer to enter the same market.
WisdomTree Europe’s strategy page does not describe any further actions upon full approval. Even if the US approves an XRP ETF under the SEC’s new leadership, that won’t necessarily benefit WisdomTree’s European branch. For now, these ETPs built on XRP will have to suffice for this market.