Exchange-Traded Products (ETPs) have revolutionized how investors access digital assets, offering a secure and regulated pathway to cryptocurrency exposure. The CoinShares XBT Physical XRP ETP stands out as a premier instrument for gaining investment access to XRP, the digital currency powering the Ripple network’s cross-border payment solutions. This guide provides a detailed overview of this unique financial product.
What Is the CoinShares XBT Physical XRP ETP?
The CoinShares XBT Physical XRP ETP is a 100% physically-backed Exchange-Traded Product. This means for every unit of the ETP issued, an equivalent amount of XRP is purchased and held in secure, institutional-grade custody. Domiciled in Sweden and trading in Swedish Krona (SEK), this ETP provides a transparent and cost-efficient method for investors to add XRP to their portfolios without the technical complexities of direct cryptocurrency ownership.
This structure is designed to mirror the performance of XRP directly, minus the management fee, providing a straightforward investment vehicle.
Product Identity and Key Information
- Product Name: CoinShares XBT Physical XRP ETP
- Ticker: COINXRP SS
- ISIN: SE0024367130
- Trading Currency: SEK (Swedish Krona)
- Exchange: Nasdaq Stockholm
Key Features and Benefits
This ETP is engineered with several investor-friendly features that differentiate it from other crypto investment options.
100% Physical Backing for Maximum Security
The cornerstone of this ETP is its full physical backing. Unlike synthetically replicated products, the issuer, CoinShares XBT Provider, transfers an equivalent amount of XRP to be stored with leading institutional custodians, Komainu and Zodia, for every investment made. This ensures the product is directly tied to the underlying asset, eliminating counterparty risk associated with derivatives.
Unmatched Transparency with Real-Time Verification
Transparency is a critical concern in the digital asset space. The reserves for all CoinShares XBT Physical ETPs are independently verified by The Network Firm. Furthermore, through the LedgerLens tool, any investor can publicly view and verify that the ETP’s holdings match its obligations in real-time, providing unparalleled peace of mind.
👉 View real-time reserve verification tools
Seamless Integration with Swedish Investment Accounts
A significant advantage for investors in Sweden is the product’s eligibility for inclusion in an Investment Savings Account (ISK or Investeringssparkonto). This allows for tax-efficient growth, as investments within an ISK are subject to a favorable tax regime on capital gains and dividends, making it an efficient way to hold crypto exposure.
Accessible Through Familiar Brokerage Platforms
You don’t need a cryptocurrency exchange to invest. The CoinShares XBT Physical XRP ETP trades on a traditional stock exchange (Nasdaq Stockholm), meaning you can purchase it through your existing online broker or investment platform, just like you would any stock or ETF.
How to Invest in the XRP ETP
Adding this ETP to your portfolio is a simple, four-step process familiar to any equity investor.
- Copy the Product ID: Locate and copy the product’s unique identifier, either its ISIN (SE0024367130) or its Ticker symbol (COINXRP SS).
- Access Your Broker Account: Log in to your preferred brokerage or investment platform. There is no need for a separate crypto wallet or account.
- Search for the Product: Within your broker’s trading interface, paste the ISIN or Ticker into the search bar to locate the correct ETP.
- Place Your Order: Enter the number of ETP shares you wish to purchase, review the order details, and confirm the trade.
Understanding XRP and Ripple
It is crucial to understand the distinction between the digital asset and the company behind it.
What is Ripple?
Ripple is a technology company that builds enterprise-grade solutions for global payments. Its core products, RippleNet and On-Demand Liquidity (ODL), are used by financial institutions to facilitate fast, low-cost international money transfers.
What is XRP?
XRP is the native digital currency on the Ripple network. It acts as a bridge currency in ODL to provide liquidity and facilitate settlements between different fiat currencies, making transactions more efficient. While intrinsically linked, Ripple (the company) and XRP (the digital asset) are separate entities.
Does Ripple have a public stock?
No, Ripple Labs Inc. is a privately held company. Its equity is not publicly traded on any stock exchange. Therefore, the XRP ETP offers exposure specifically to the XRP digital asset, not to ownership in the private company Ripple.
Important Risk Considerations
All investments carry risk, and crypto ETPs are complex instruments. It is vital to understand the following before investing:
- Capital at Risk: Your capital is fully at risk, and you could lose part or all of your initial investment.
- Volatility: The value of XRP, and thus the ETP, can be highly volatile and subject to significant price swings.
- Past Performance: Historical performance data is not a reliable indicator of future results or returns.
- Complexity: Crypto-based ETPs are sophisticated products; ensure you fully understand their structure and risks.
Potential investors should always consult the product’s prospectus, Key Information Document (KID), and factsheet for a complete understanding of all associated risks.
Frequently Asked Questions
How is this XRP ETP different from buying XRP directly on an exchange?
This ETP allows you to gain exposure to XRP's price through a regulated, exchange-traded security. You avoid the need to manage private keys, use crypto wallets, or navigate cryptocurrency exchanges. It also enables holding XRP exposure within tax-advantaged accounts like an ISK.
Who verifies that the ETP is fully backed by XRP?
The holdings are independently audited and verified by The Network Firm. Furthermore, the Proof of Reserves is publicly accessible 24/7 via the LedgerLens tool, allowing anyone to confirm the backing assets in real-time.
What are the costs associated with investing in this ETP?
The primary cost is the annual management fee, which is deducted from the fund's assets and reflected in its Net Asset Value (NAV). You may also pay standard brokerage commissions when buying or selling the ETP shares on the stock exchange.
Can international investors outside Sweden access this ETP?
While the ETP is domiciled in Sweden and trades in SEK, international investors can typically access it through global brokerage platforms that offer trading on the Nasdaq Stockholm exchange, though they should be aware of any applicable foreign exchange and tax implications.
Is my investment in this ETP covered by any investor protection scheme?
As a debt security (ETP), it is not covered by national deposit guarantee schemes that protect bank deposits. Investor protection would be subject to the rules governing the specific structure and the jurisdiction of the issuer.
What is the difference between a physically-backed and a synthetic ETP?
A physically-backed ETP directly holds the underlying asset (in this case, XRP). A synthetic ETP uses derivatives and swaps to replicate the asset's price performance, which introduces counterparty risk with the financial institution providing the swap. Physical backing is generally considered more transparent and secure.
For investors seeking a regulated and secure avenue to gain exposure to the XRP market, the CoinShares XBT Physical XRP ETP presents a compelling option. Its full physical backing, high level of transparency, and ease of access through traditional brokers make it a standout choice in the digital asset ETP landscape.