WisdomTree has today (21 November) unveiled its latest cryptocurrency exchange-traded product (ETP).
The WisdomTree Physical XRP (XRPW) ETP is listed on Deutsche Börse Xetra, the Swiss Stock Exchange SIX, and Euronext exchanges in Paris and Amsterdam with a management expense ratio of 0.50%, which it said represented the lowest-priced ETP in Europe providing exposure to XRP.
The WisdomTree Physical XRP ETP is designed to offer investors a simple, secure, and cost-efficient way to gain exposure to the price of XRP. The ETP is 100% backed by XRP, providing exposure to the spot price of XRP through an institutional-grade, physically backed structure. Investors also benefit from a dual-custody model with regulated custodians and with the underlying assets professionally secured in cold storage.
XRP is a digital asset native to the XRP Ledger (XRPL), an open-source, permissionless, and decentralised blockchain. The XRPL uses a Proof-of-Association (PoA) consensus mechanism operated by universities, exchanges, businesses and individuals to validate transactions. This system is more efficient to run than Proof-of-Work (PoW), as it requires fewer hardware resources and consumes less energy. Built in 2012, specifically for payments, XRP can settle transactions on the ledger in 3-5 seconds and was designed to be a faster, more sustainable alternative to Bitcoin.
XRP can be sent directly without a central intermediary, making it a convenient instrument for bridging two different currencies quickly and efficiently. It is freely exchanged on the open market and used in the real world to enable cross-border payments and microtransactions.
Dovile Silenskyte, director, Digital Assets Research, WisdomTree, said: “With risk-on sentiment building, altcoin exposures like XRP could outperform a standard bitcoin and ether allocation. XRP can sit alongside these mega caps in a multi-asset portfolio and reduce investors’ exposure to a single token.
Cryptocurrencies represent more than 1% of the market portfolio, and should, therefore, be a component of a well-rounded investment strategy. As an asset class with low correlation to traditional asset classes, crypto can help enhance diversification and potentially improve risk-adjusted returns in a multi-asset portfolio.”
WisdomTree was the first established ETP issuer to provide European investors with institutional grade physically backed crypto exposure following the launch of WisdomTree Physical Bitcoin in December 2019. It now has a thoughtfully curated range of nine physically backed crypto ETPs, providing European investors convenient access to crypto in a familiar ETP wrapper.
WisdomTree has more than $1.1bn in assets under management across its institutional-grade crypto ETPs, with net inflows of $191m in 2024. Physically backed crypto ETPs from WisdomTree provide investors with a simple, secure and low-cost way to gain exposure to a range of cryptocurrencies including Bitcoin, Ether, Solana, Cardano, Polkadot, three diversified crypto baskets and now XRP. WisdomTree's cryptocurrency ETP range is among the most competitively priced in Europe.
Alexis Marinof, head of europe, WisdomTree, said: “This new launch complements our existing line-up of physically-backed cryptocurrency ETPs, providing investors with another solution to enhance their multi-asset portfolios. Cryptocurrency ETPs represent an efficient way to keep investors in a regulated framework and are becoming the preferred vehicle to access cryptocurrencies.
"WisdomTree leverages 20 years of expertise in providing and managing physically-backed ETPs for institutional investors. With over $100bn of assets under management globally across ETFs and ETPs, investors in our cryptocurrency ETPs can benefit from our global reach, scale and resources.”
WisdomTree’s European crypto ETPs are available for sale in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, Poland, Netherlands, Norway, Spain, Sweden and Switzerland. WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum are also available for sale in the United Kingdom.
