US-based ETP sponsor WisdomTree has launched a cryptocurrency exchange-traded product (ETP) based on XRP.
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.
The 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 the firm claims is the lowest-priced ETP in Europe providing exposure to XRP.
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[2], 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.”
