WisdomTree has introduced its latest crypto asset ETP in Europe, providing directly backed exposure to XRP, the native token of the Ripple network.
Ripple’s legal troubles have now been fully resolved.
The WisdomTree Physical XRP ETP (WXRP) has been listed on SIX Swiss Exchange in US dollars and Swiss francs, on Euronext Amsterdam in US dollars, and on Xetra and Euronext Paris in euros.
Launched in 2012, Ripple was designed to offer a real-time global settlement network for fast, low-cost, and energy-efficient transactions with settlements happening in 3-5 seconds.
Comparable to SWIFT but more modern, the network consists of an open-source, decentralized blockchain that employs a unique Proof-of-Association (PoA) consensus mechanism instead of mining, enabling rapid transaction validation while minimizing energy use and hardware demands.
XRP acts as a bridge currency, allowing quick conversion and transfer of value between fiat currencies or digital assets without intermediaries. Freely traded on the open market, XRP supports real-world applications, making Ripple a scalable and innovative solution for global financial transfers.
Ripple’s history has been mired in controversy, however. In December 2020, the US Securities and Exchange Commission announced that it would be suing XRP’s developer, Ripple Labs, over unlawfully selling the token to retail investors. The SEC alleges that XRP is actually a security and, as such, its unregistered issuance broke federal securities laws. Over the years, this lawsuit created significant uncertainty for Ripple and XRP’s future.
However, the case has now been fully resolved. In July 2023, a federal judge ruled that XRP is not a security when traded on public exchanges, offering a partial victory for Ripple. While the company was ordered to pay a $125 million penalty in August 2024 for specific improper token sales, the SEC dropped all remaining claims against Ripple’s executives in October 2024.
With the legal battle behind it, Ripple is positioned to regain the trust of investors, opening the door for renewed interest and adoption of its payment technology. As of 22 November, XRP had a total market capitalization of $87.2 billion, making it the sixth-largest crypto asset globally.
The WisdomTree Physical XRP ETP provides investors with convenient access to XRP through a liquid, regulated vehicle, removing the technical challenges of managing private keys or crypto wallets.
It employs a fully collateralized, so-called “physical” replication model, with each ETP share 100% backed by XRP tokens stored using an institutional-grade custody solution.
The ETP comes with an expense ratio of 0.50%.
Dovile Silenskyte, Director, Digital Assets Research, WisdomTree, commented: “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.”