Ripple News: ETC Group Launches XRP-Backed Exchange Traded Product

April 22, 2022 10:12 pm Comments

ETC Group just launched a new exchange traded product that is called XRPetc under the primary ticket GXRP which is now available across 16 different countries within the EU.

The product is listed on the XETRA exchange which is the largest venue for ETF trading within Europe and indicates that ETFs that are backed by digital assets are becoming increasingly popular.

This new product that was just launched is specifically backed by the XRP token which allows new investors to get exposure to XRP through more traditional, regulated markets.

The company has commented that this launch comes in response to high demand from institutional investors who want to allocate XRP to their overall portfolios.

This demand has been consistently high despite Ripple’s current lawsuit with the SEC and the token continues to gain positive momentum as it remains the 6th largest blockchain in the world by market cap.

FinanceFeeds reports:

The world’s sixth-biggest cryptocurrency by market capitalization has been gaining momentum alongside other cryptocurrencies even as it continues to run into controversy with the SEC, which alleges it was a security and not a currency.

Bradley Duke, Founder and co-CEO at ETC Group said: “Ripple is rapidly becoming a leader in global payment systems with hundreds of financial institutions choosing Ripple to provide a better international payments experience for their customers, in real-time.

By launching this latest ETC to our expanding portfolio of high quality, physically backed digital assets, we’re continuing to grow our offering to investors, providing access to an increasingly wide range of digital currencies and assets – especially those amassing large market caps.

The market leading success of our products has been driven by our partnerships with world-class liquidity providers to deliver high liquidity and tight trading spreads.”

ETC Group is also focusing on growing the number of exchange traded products that it provides that are backed by digital assets like XRP.

When an ETC is backed by a digital token, the digital asset itself indirectly gets more trading liquidity due to its increased exposure.

So far, the company has around 11 exchange traded products that are backed by digital assets which includes the likes of Bitcoin, Ethereum, and Cardano.

Usually, digital assets that are selected to be used to back the value of an ETP are the ones that show promising potential such as XRP which was chosen for its global payment network that is continuing to grow thanks to its speed and reliability.

Yahoo reports:

Ripple is a blockchain-based digital payment network and protocol with its own cryptocurrency, XRP.

Since launching in 2012, Ripple has rapidly gained acceptance as a system for international money and security transfers by banks and financial middlemen dealing across geographies and currencies, with XRP currently ranked 6th by market cap of all cryptocurrencies.1

XRP will join the company’s suite of institutional-grade crypto exchange traded products including Bitcoin, Ethereum, Solana, Cardano, Polkadot, Litecoin, Avalanche, Cosmos, Polygon and Uniswap that trade on XETRA.

The new ETC will be marketed and distributed by HANetf and available in EUR and USD.

Once the SEC finally decides to approve spot crypto ETFs within the United States, the adoption of digital assets could jump to a whole new level.

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