Introduction
The 21Shares XRP ETP (AXRP) provides 100% physically-backed exposure to XRP, the fifth-largest cryptocurrency by market capitalization. This exchange-traded product offers investors a simple, secure, and regulated way to participate in the growth of XRP—a decentralized payment protocol revolutionizing cross-border transactions.
👉 Discover how AXRP simplifies crypto investing
Product Overview
Key Features
- Full Physical Backing: Each AXRP unit is collateralized by actual XRP holdings
- Regulated Structure: Complies with financial market standards for transparency
- Cost Efficiency: Management fee waived until January 2025 or until assets reach $500M
- Liquidity: 7,995,000 securities outstanding on Cboe BZX Exchange
Investment Thesis
XRP's utility in facilitating real-time international payments positions AXRP as:
- A hedge against traditional cross-border payment inefficiencies
- A growth asset in the digital payments revolution
- A diversified crypto exposure within regulated frameworks
Market Performance Analysis
Comparative Metrics
| Period | Current Month | Previous Month | YTD | Since Inception |
|---|---|---|---|---|
| AXRP | - | - | - | - |
| XRP Spot | - | - | - | - |
Data sourced from Alpha Vantage and CryptoCompare
Structural Advantages
Custodial Security
- Custodian: Coinbase Custody Trust Company, LLC
- Cold Storage: 95%+ assets held offline
- Insurance: Comprehensive coverage against theft/loss
Trading Efficiency
- Median Bid/Ask Spread (30 Day): [Data Pending]
- Premium/Discount to NAV: ±0.5% on [X]% of trading days
Investment Considerations
Risk Factors
- Crypto market volatility
- Regulatory evolution
- Technology adoption risks
- Counterparty exposure (limited to Coinbase Custody)
Tax Implications
- Treated as security in most jurisdictions
- Subject to capital gains tax
- No dividend distributions
FAQ: Addressing Investor Queries
Q: How does AXRP differ from holding XRP directly?
A: AXRP eliminates private key management risks while providing exchange-traded liquidity and regulatory oversight.
Q: What happens when the fee waiver ends?
A: Post-January 2025, a standard 1.5-2.5% management fee will apply, competitive with other crypto ETPs.
Q: Can AXRP be held in retirement accounts?
A: Yes, through compatible brokerage platforms that support ETP trading.
👉 Explore retirement account options for crypto ETPs
Conclusion
The 21Shares XRP ETP democratizes institutional-grade XRP exposure through a familiar investment vehicle. With its physically-backed structure and regulated framework, AXRP represents a strategic bridge between traditional finance and digital asset innovation.
For current performance data and prospectus details, consult the official 21Shares website.