- Fidelity’s XRP product is an ETP, not an ETF.
- Grayscale includes XRP in its GDLC fund post-July 2023 ruling.
- XRP faces a 9% weekly decline but shows marginal gains in the last 24 hours.
The cryptocurrency community’s anticipation for the inclusion of altcoins like XRP in exchange-traded funds (ETFs) has sparked a wave of excitement and speculation. The buzz surrounding the term ‘XRP ETF’ trended on social media, particularly on X [formerly Twitter], as enthusiasts eagerly awaited the potential launch of an ETF in the United States.
Adding fuel to the fire was a recent post from the official X account, sharing a screenshot from the Good Morning Crypto podcast, proclaiming, “JUST IN: Fidelity Unveils XRP ETP! With Grayscale and Fidelity offering XRP products, 2024 could be the breakout year for the token as it inches closer to all-time highs.”
However, upon closer inspection, it became apparent that the product showcased on Fidelity’s platform was not an ETF but an XRP Exchange-Traded Product (ETP). Launched by Amun AG, a Swiss financial institution, this product falls under the category of passive investments, which includes various instruments like ETFs and Traded Notes (ETNs).
A brief investigation on Fidelity’s platform confirms that the ETP displayed is indeed the one introduced by Amun AG in April 2019. This product is actively traded on Swiss exchanges like the SIX Swiss Exchange. Contrary to circulating claims, it is not a new ETP in the U.S. and has been available for trading since its initial launch.
Grayscale’s XRP Move Adds to the Intrigue
Speculations about an XRP ETF gained momentum with Grayscale’s recent decision to include the token in its Grayscale Digital Large Cap (GDLC) fund. This decision came after a July 2023 ruling by Judge Analisa Torres, classifying XRP as a non-security, leading Grayscale to reintroduce the digital asset to its fund. However, without official confirmation from Grayscale, these speculations should be treated with caution.
In terms of market performance, the leading altcoin has witnessed a 9% decline in the weekly index. Despite this, over the last 24 hours, the sixth-largest token has shown marginal gains, currently trading at $0.5.
As the XRP community navigates through the ETP vs. ETF confusion, it becomes crucial to rely on accurate information and official announcements to avoid contributing to unwarranted hype and misinformation in the crypto space.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.