An XRP ETP from 21Shares (Amun) has surfaced on asset manager Fidelity Investments’ web-based platform, sparking mixed reactions and controversy in the XRP community.
Notably, the official X account of the Good Morning Crypto podcast shared a screenshot of the XRP ETP displayed on Fidelity Investments’ digital platform.
The account touted it as a recent development, insinuating that Fidelity might have unveiled an XRP ETP. However, this is not completely accurate.
Growing Demand for XRP ETF
The commentary suggested that 2024 could be a pivotal year for XRP, with investment firm Grayscale and asset manager Fidelity both offering XRP products. Recall that Grayscale recently re-added XRP to its Grayscale Digital Large Cap (GDLC) fund.
The decision came on the back of the July 2023 ruling from Judge Analisa Torres, declaring XRP a non-security.
Grayscale had removed XRP from the product in January 2020 amid the legal battle surrounding its security status. The recent re-introduction sparked speculation of an imminent XRP ETF from the firm.
Interestingly, amid the sustained discussions around spot Bitcoin ETFs, XRP proponents have continued to push for an XRP ETF, citing the asset’s unique legal clarity in the United States.
The purported ETP from Fidelity has sparked a wave of elation among these proponents, but how accurate is this discovery?
Facts About the XRP ETP
An investigation carried out by The Crypto Basic confirms that Fidelity has not really launched an XRP ETP.
For the uninitiated, An ETP is a broader category that includes ETFs (Exchange-Traded Funds) and other similar instruments, like exchange-traded notes (ETNs). Simply put, all ETFs are ETPs, but not all ETPs are ETFs.
A simple search on Fidelity shows that the product displayed on the asset manager’s platform is an XRP ETP launched by Amun AG, a Swiss-based financial institution.
Amun launched the XRP ETP (ticker: AXRP) in April 2019 to trade on public Swiss exchanges like the SIX Swiss Exchange.
A year later, Amun made a rebrand of its ETP investment line to bear the brand 21Shares. As a result, all Amun ETPs, including the XRP ETP (AXRP), started bearing the brand name 21Shares.
The Amun XRP ETP is the same 21Shares XRP ETP spotlighted by The Crypto Basic in a previous report last November.
While the product continues to trade, it is not an ETP launched in the U.S., nor is it a new one, as opposed to circulating claims.
Notably, the product is 100% backed by physical XRP and boasts $51,315,328 ($51.3 million) in assets under management, per data from a current fact sheet.
While not registered in the U.S., the product’s custody service provider is Coinbase Custody, the choice of most asset managers looking to launch a Bitcoin ETF. Authorized participants also include U.S.-headquartered trading firms such as Jane Street.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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