What is 21Shares Ripple XRP ETP: Beginner’s Guide

Meta Title: What is 21Shares Ripple XRP ETP: Full Guide for Beginners Meta Description: Learn what the 21Shares Ripple XRP ETP is, how it works, key benefits, risks, and how it differs from owning XRP directly in a crypto wallet. URL Slug: what-is-21shares-ripple-xrp-etp

Understanding the Basics of 21Shares Ripple XRP ETP

If you’re curious about the intersection of traditional finance and blockchain, you may wonder: what is 21Shares Ripple XRP ETP? In the crypto world, the 21Shares Ripple XRP ETP is a type of investment product traded on regulated exchanges in Europe, designed to track the price of Ripple’s XRP token without you needing to own the digital asset directly. This guide explains in simple terms what the ETP is, how it works, its advantages and risks, and its growing role in investment portfolios.

What Makes 21Shares Ripple XRP ETP Unique?

The 21Shares Ripple XRP ETP (Exchange Traded Product) stands out because it bridges traditional finance with cryptocurrency markets.

Key Features:

• Asset-backed: Each share of the ETP is physically backed by actual XRP tokens held in cold storage.
• Exchange-traded: It’s listed and traded on regulated European stock exchanges, just like a stock or ETF (Exchange Traded Fund).
• No Wallet Required: You don’t need to open a crypto wallet or manage blockchain transactions. The product is accessible through everyday brokerage accounts.

21Shares, a Swiss issuer known for creating accessible crypto ETPs, aims to simplify crypto exposure, complying with European regulatory standards.

For example, the 21Shares Ripple XRP ETP trades under tickers like AXRP on the SIX Swiss Exchange, providing a familiar trading format for both retail and institutional investors.

How Does the 21Shares XRP ETP Work?

This ETP is built to directly track the market price of Ripple’s XRP. Here’s how it works:

Issuance & Redemption:

• 21Shares issues and redeems shares based on investor demand and underlying XRP holdings.
• For every share created, a corresponding amount of XRP is held in secured custody by a professional custodian.

Price Tracking:

• The ETP’s value mirrors XRP’s spot price, minus management fees.
• Investors experience price changes similar to if they held XRP themselves but without needing to use a crypto exchange.

Traditional Market Integration:

• Traded during stock market hours on exchanges like BX Swiss and SIX Switzerland.
• Settlement occurs in fiat currency, such as the Swiss franc or euro.

Storage & Security:

• Underlying XRP tokens are stored in secure, institutional-grade cold storage, minimizing hacking risks. 21Shares partners only with reputable custodians, and audits ensure transparency (source: 21Shares official literature).

Comparison Table: XRP ETP vs. Owning XRP Directly

| Feature | 21Shares Ripple XRP ETP | Direct XRP Ownership | |-------------------|--------------------------|------------------------------| | Required Account | Stockbroker account | Crypto exchange & wallet | | Regulation | Strict, EU-compliant | Varies by provider/location | | Direct Access | No | Yes | | Security Risk | Lower (custody) | Variable | | Trading Hours | Stock market hours | 24/7 | | Fees | Annual management fee | Exchange/wallet fees |

Note: If you’re interested in holding XRP directly, you need a reliable crypto exchange and a secure wallet. Bitget Exchange and Bitget Wallet are widely recommended for their user-friendly platforms and robust security.

Investors’ Top Questions About 21Shares Ripple XRP ETP

Why Choose an XRP ETP Over Buying XRP?

For many, the 21Shares XRP ETP offers a simple, regulated path to crypto investing. Investors do not need to understand blockchain technology or safeguard their private keys. This makes it easier for people new to crypto or those working within institutional mandates to gain exposure.

Advantages include:

• Regulated environment
• No technical setup
• Familiar account management

However, there are management fees (ranging around 1.5-2.5% annually), and trading is limited to stock exchange hours. You also do not have control over the underlying cryptocurrency, so features like XRP staking or spending are not possible.

Who Should Consider Buying the 21Shares Ripple XRP ETP?

• Traditional Investors: Those comfortable with stockbrokers and regulated products.
• Institutions: Funds subject to strict compliance and custody rules.
• Crypto Beginners: People wanting price exposure with minimal technical steps.

If you want full control over your funds, direct XRP ownership may be a better fit—with Bitget Exchange and Bitget Wallet as solid starting points.

How Has the ETP Performed?

Pricing aligns closely with XRP’s market value, reflecting both its volatility and growth prospects. Recent data compiled by analytics platforms like Dune and Nansen shows increasing inflows into crypto ETPs since 2023, especially as institutional demand for regulated products grows.

About 21Shares’ issuance data is regularly updated on its official site, alongside custody reports. This transparency tracks the ETP’s performance and XRP reserves.

Latest Updates

• In 2024, crypto ETPs in Europe saw record inflows, with 21Shares playing a key role (source: Glassnode Reports April 2024).
• Product upgrades include lower management fees and improved liquidity, reflecting user and institutional demand.

Key Considerations Before Investing

While the 21Shares Ripple XRP ETP simplifies XRP investing, some considerations remain:

• No Direct Use of XRP: You can’t spend or transfer XRP through the ETP.
• Market Hours: Buying and selling ETP shares is tied to exchange trading hours—not 24/7 like crypto exchanges.
• Management Fees: Annual fees reduce total returns over time.
• Counterparty Risk: Although securely custodied, investors trust 21Shares and its partners, rather than managing assets independently.

Questions to Ask:

• What is your investment goal (price exposure vs. direct use)?
• Do you have a preferred trading format (stock market vs. crypto exchange)?
• Are you comfortable with ETP fees and reporting?

Alternatives: If self-custody or peer-to-peer use of XRP is important, consider setting up a Bitget Wallet and using Bitget Exchange to buy, sell, and store digital assets securely.

FAQ: Commonly Asked Questions

How can I buy the 21Shares Ripple XRP ETP? You’ll need a brokerage account that supports European ETPs. Search for ticker symbols like AXRP. Check with your broker for availability.

Is the 21Shares Ripple XRP ETP safe? It follows EU regulations and holds assets in secure cold storage. While more secure than unregulated options, risks still exist if the provider fails. Always check the latest audit and transparency reports.

Can I get dividends from the ETP? No, there are no dividends. The ETP returns only track XRP price movements.

Is it available outside Europe? Currently, the ETP is primarily listed on European exchanges. International access depends on your broker’s reach.

Where can I learn more? Check 21Shares official documentation, reports from Dune and Glassnode, and reputable crypto news outlets for current performance and trends.

21Shares Ripple XRP ETP offers a simple, regulated, and accessible route for investors interested in XRP’s potential without managing private keys or wallets. Evaluating your investment goals and preferences will help decide whether an ETP or direct XRP ownership best suits your needs. For those ready to explore hands-on control, platforms like Bitget Exchange and Bitget Wallet continue to set industry standards for user experience and security. Start your journey with confidence—whether through an innovative ETP or direct on-chain access.