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WisdomTree Launches a Physically-Backed XRP Cryptocurrency ETP – Funds Society

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20 hours ago

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WisdomTree Launches a Physically-Backed XRP Cryptocurrency ETP – Funds Society

WisdomTree, a global provider of financial products, has announced the launch of its latest cryptocurrency exchange-traded product (ETP). The WisdomTree Physical XRP ETP (XRPW) is listed on Deutsche Börse Xetra, the Swiss SIX Exchange, and the Euronext exchanges in Paris and Amsterdam with a management expense ratio of 0.50%, making it the lowest-cost ETP in Europe offering exposure to XRP.

The fund is designed to provide investors with a “simple, secure, and cost-efficient” way to gain exposure to the price of XRP. It is fully backed by XRP, “offering exposure to the spot price of XRP through an institutional-grade, physically backed structure.” Investors will also benefit from a dual custody model with regulated custodians and the underlying assets professionally secured in “cold storage.”

Regarding this cryptocurrency, the fund manager explains: “XRP is a native digital asset of the XRP Ledger (XRPL), a decentralized, permissionless, and open-source blockchain. XRPL uses a Proof-of-Association (PoA) consensus mechanism operated by universities, exchanges, businesses, and individuals to validate transactions. This system is more efficient than Proof-of-Work (PoW), as it requires less hardware resources and consumes less energy.

Created in 2012 specifically for payments, XRP can settle transactions on the ledger in 3-5 seconds and was designed to be a faster and more sustainable alternative to Bitcoin. XRP can be sent directly without a central intermediary, making it a convenient tool for bridging two different currencies quickly and efficiently. It is freely traded on the open market and is used in real-world applications to enable cross-border payments and microtransactions.”

Following this launch, Dovile Silenskyte, Head of Digital Asset Analysis at WisdomTree, suggests that with increasing risk appetite, exposure to altcoins like XRP could outperform a standard Bitcoin and Ether allocation. In her view, XRP can be considered alongside these megacaps in a multi-asset portfolio to reduce exposure to a single token. “Cryptocurrencies represent more than 1% of the market portfolio and should therefore be part of a comprehensive investment strategy. As an asset class with low correlation to traditional asset classes, cryptocurrencies can help increase diversification and potentially improve risk-adjusted returns in a multi-asset portfolio,” Silenskyte adds.

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Meanwhile, Alexis Marinof, Head of Europe at WisdomTree, highlighted: “This new launch complements our existing range of physically backed cryptocurrency ETPs, offering investors another solution to enhance their multi-asset portfolios. Cryptocurrency ETPs are an effective way to keep investors within a regulated framework and are becoming the preferred vehicle for accessing cryptocurrencies. WisdomTree has 20 years of experience in providing and managing physically backed ETPs for institutional investors. With over $100 billion in assets under management globally across ETFs and ETPs, investors in our cryptocurrency ETPs can benefit from our global reach, scale, and resources.”

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Crypto

TRON DAO Drives Blockchain Discussion at Berkeley Security Summit as a Platinum Sponsor, Highlighting a Year of Blockchain Education Through the TRON Builder Tour – Press release Bitcoin News

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2 hours ago

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December 3, 2024

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TRON DAO Drives Blockchain Discussion at Berkeley Security Summit as a Platinum Sponsor, Highlighting a Year of Blockchain Education Through the TRON Builder Tour – Press release Bitcoin News

TRON DAO Drives Blockchain Discussion at Berkeley Security Summit as a Platinum Sponsor, Highlighting a Year of Blockchain Education Through the TRON Builder Tour – Press release Bitcoin News





















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Ripple's XRP Surges 40% After Trump Win, But It May Crash Soon

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13 hours ago

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December 3, 2024

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Ripple's XRP Surges 40% After Trump Win, But It May Crash Soon

Ripple’s XRP has surged to become the third-largest cryptocurrency by market capitalisation, surpassing notable tokens such as Solana, USDT, and Binance Coin, as the landscape for crypto-friendly policies begins to shift in Washington, D.C.

On Monday, XRP skyrocketed by an impressive 40% within 24 hours, reaching $ 2.80- a milestone it hadn’t achieved in seven years. The cryptocurrency has attracted over $120 billion in new investments, pushing its market cap to $156 billion following the Nov. 5 election of Donald Trump and other pro-crypto candidates.

Crypto News reports that the primary driver behind XRP’s rally was Trump’s victory, expected to usher in more favourable regulations for the crypto sector. This is particularly significant for Ripple Labs, embroiled in a legal battle with the Securities and Exchange Commission since 2020.

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The election results have also revived hopes for a spot XRP exchange-traded fund (ETF) by 2025. Earlier this week, asset manager WisdomTree, which oversees $111 billion in assets, applied for a spot Ripple ETF.

In a recent X post, CryptoQuant CEO Ki Young Ju emphasized that whale activity on Coinbase has been a major driver of the XRP rally, with exchange premiums rising between 3% and 13%. In contrast, South Korea’s Upbit exchange- known for its significant XRP trading base-has shown no such premium during this period.

According to Santiment, a leading analytics firm, wallets holding between 1 million and 10 million XRP accumulated 671 million coins within three weeks. This marked the first notable increase in non-empty wallets in eight years, fueled by FOMO-driven buying.

However, Ripple’s price could face a potential pullback in the coming weeks. Currently, XRP is trading well above its short- and long-term moving averages, suggesting the possibility of mean reversion, where prices tend to return to their average levels over time.

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Moreover, technical indicators like the Relative Strength Index (RSI) and Stochastic Oscillator signal overbought conditions, indicating potential price weakness. XRP may also be in the markup phase of the Wyckoff Method, a stage characterized by demand exceeding supply. This phase is often followed by the distribution phase, typically resulting in a sell-off.

If a pullback occurs, XRP could retreat to retest support at $1.9697, a critical level last reached in April 2021.


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Japan's DMM Bitcoin to end business after losing 48 bil. yen in leak

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1 day ago

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December 2, 2024

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Japan's DMM Bitcoin to end business after losing 48 bil. yen in leak

Japanese cryptocurrency exchange DMM Bitcoin Co. said Monday it will go out of business after losing 48.2 billion yen ($320 million) worth of digital assets in an unauthorized leak late May.

The exchange will transfer its customer assets to SBI VC Trade Co., its peer under financial giant SBI Holdings Inc., by around March next year, it said.

The company, a unit of major IT firm DMM.com LLC, suspended some of its services, such as screening applications for new accounts, after it detected an unauthorized leakage of funds on May 31.

DMM Bitcoin said it decided to close down because it judged prolonged restrictions on its services would significantly inconvenience clients.

No customers suffered financial damage as the exchange secured 55 billion yen from its group firm to cover the lost assets.

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The cause of the leakage remains unclear, but a cyberattack targeting cryptocurrency is suspected.

In September, Japan’s financial watchdog, the Financial Services Agency, ordered the exchange to improve operations, saying its risk management structure was insufficient.

Related coverage:

48 billion yen in bitcoin cryptocurrency disappears from Japan exchange

Shiba Inu of “doge” meme fame leaves enduring legacy, online and off

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