XRP Market Set to Record New “Flood of Liquidity” Amid Multiple XRP ETPs
The XRP market is poised to witness a new flood of liquidity amid multiple XRP ETPs, with one of these products set to hit the European market next month.
XRP community member and prominent YouTuber Zach Rector highlighted these products in a recent video, emphasizing that their combined presence could bolster XRP liquidity. This could materialize as institutional adoption witnesses an observable uptick.
Recall that The Crypto Basic reported yesterday that DeFi Technologies, a prominent technology firm, was looking to launch an XRP-based exchange-traded product (ETP). DeFi Technologies announced that it would be launching the product early December through its subsidiary Valour.
A Slew of XRP ETPs
The report triggered anticipation within the XRP community, as the introduction of this investment vehicle signaled increased institutional adoption. Amid the bullish reception, Zach Rector took to his YouTube channel to highlight the possible implications of the move, further calling attention to similar products.
Citing disclosures from community influencer Chad Steingraber, Rector pointed out that 21Shares, a Swiss financial technology company, has the 21Shares Ripple XRP ETP with the ticker AXRP. Despite just calling public attention to the product, the 21Shares XRP ETP launched four years ago.
Introduced in April 2019, AXRP is available to investors in the form of a regular stock on a traditional exchange. The product tracks investment in XRP, and currently boasts $49,017,104 in assets under management (AUM). The 21Shares XRP ETP is recording a YTD return of +69%.
In addition, Zach Rector pointed out that German-based crypto ETP issuer ETC Group also has its XRP investment product, the ETC Group Physical XRP (GXRP). According to ETC Group, the product has a 100% physical XRP backing, and trades like a regular ETF. ETC Group listed GXRP for trade on European exchanges last April.
Possible Implications for the XRP Market
Multiple XRP ETPS can impact the XRP market by enhancing the asset’s liquidity by providing easier access for institutional and retail investors. These investment products allow investors to trade XRP on traditional exchanges, potentially increasing trading volume.
Additionally, ETPs can offer a regulated and secure investment avenue, attracting a broader range of investors and contributing to price discovery. This increased market participation may also improve XRP’s overall market efficiency.
For this reason, several XRP community members have clamored for the launch of a spot-based XRP ETF in the United States, seeing as the asset has attained legal clarity. These calls intensified following the discovery of a fake BlackRock XRP ETF filing in Delaware.