The European department of ETF issuer WisdomTree has just announced a new ETP based on XRP. This product is now available in four EU countries, which has caused the price of XRP to rise slightly.
ETPs are a popular issuance strategy to generate revenue without needing ETF approval, but Europe will not necessarily approve even if the US does.
WisdomTree's XRP ETP
WisdomTree, one of the Bitcoin ETF issuers in the US, has announced that its European branch is offering an exchange-traded product (ETP) based on XRP. This new product is now available in Germany, Switzerland, France, and the Netherlands. More and more issuers have applied for XRP ETF, but WisdomTree is taking a slightly different approach.
"WisdomTree Physical XRP ETP provides a simple, safe, and low-cost way to gain exposure to XRP, one of the largest cryptocurrencies by market capitalization. Backed 100% by XRP, XRPW is the lowest-priced XRP ETP in Europe, providing direct exposure to the spot price," the announcement stated.
The possibility of an official XRP ETF is increasing with the current bull market, and Ripple CEO Brad Garlinghouse considers it "inevitable." However, that has not yet happened, and ETP services allow issuers to somewhat address customer requests. BitWise, which has also applied for an XRP ETF in the US, recently acquired a European ETP issuer to participate in the same market.
However, WisdomTree is no stranger to this market strategy. In May of this year, it gained approval to offer Bitcoin and Ethereum-based ETPs to UK investors.
The UK has not yet fully approved an ETF for either of these assets, but WisdomTree still has access to the market. Even a small portion of the XRP market could prove profitable; the asset's value surged today.
XRP price performance. Source: BeInCrypto
WisdomTree Europe's strategy page does not describe any further actions after full approval. Even if the US approves an XRP ETF under the new SEC leadership, it will not necessarily benefit WisdomTree's European branch. Currently, ETPs built on XRP will have to suffice for this market.