XRP surges as Ripple plans to invest in rebranded Bitwise XRP ETP
As Bitwise rebrands the offering to increase its market share in Europe, Ripple has announced an investment in Bitwise's XRP exchange-traded product (ETP). Bitwise announced on November 7 that it would change the name of its European XRP ETP from the ETC Group Physical XRP to the Bitwise Physical XRP ETP. GXRP, its ticker, will not change.
For our European investors:
— Bitwise (@BitwiseInvest) November 27, 2024
Today, we're excited to introduce the Bitwise Physical XRP ETP (GXRP) with over $80,000,000 in AUM.
GXRP is trading on Germany’s Deutsche Börse Xetra and provides institutional-grade access to XRP.
We’re also proud to share that Ripple is an… pic.twitter.com/LOhWMtWh6D
The move comes after Bitwise entered the European market in August by purchasing the ETC Group, a cryptocurrency investment company that managed $1 billion in assets, including GXRP, Bitcoin ETP (BTCE), Ethereum with staking (ET32), Solana (ESOL), and physical crypto ETPs MSCI Digital Assets Select 20 (DA20).
Ripple Labs Plans to Invest in Bitwise XRP ETF
The Bitwise Physical XRP ETP aims to introduce XRP to European investors by offering a physically backed product that retains the underlying asset. XRP and the XRP Ledger are among the "most familiar" and trusted blockchains in the industry, according to a press release from Bitwise co-founder and CEO Hunter Horsley.
“We’re thrilled to be providing access for investors through an institutional-quality product with the Bitwise Physical XRP ETP (GXRP),” Horsley added.
Bitwise to expand across Europe
Along with rebranding its entire European ETP portfolio, Bitwise plans to broaden its operations throughout the continent. Bitwise reported substantial growth in 2024, pointing to a total client asset value of over $10 billion. The company also stated that it plans to introduce more institutional-grade cryptocurrency ETPs.
Ripple to invest in GXRP
Bitwise also disclosed that Ripple will invest in GXRP in addition to the rebranding. Brad Garlinghouse, the CEO of Ripple, noted a spike in demand for cryptocurrency-backed investment products worldwide in 2024, despite the fact that the financial details were not made public.
According to Garlinghouse, "this trend is poised to accelerate, further driving demand for crypto ETPs, such as the Bitwise Physical XRP ETP," as the US regulatory environment for cryptocurrencies finally becomes more clear.
Surge in price of XRP
On November 19, Ripple and Mercy Corps Ventures announced their collaboration, which will use the XRP Ledger (XRPL) to support financial inclusion for small businesses and entrepreneurs in emerging markets. These partnerships might encourage more people to use XRP, which could raise the token's demand.
XRP-tracked futures have grown as a result of Ripple partnerships and expectations of a crypto-friendly regulatory environment under Trump's presidency. On November 22, the open interest (IO) increased to all-time highs.
In partnership with Archax, a digital asset exchange based in the UK that is subject to FCA regulation, Ripple has announced the launch of a tokenized money market fund on the XRP ledger. The fund, which will be managed by the UK asset manager abrdn, is a component of its £3.8 billion US dollar Liquidity Fund (Lux), according to a press release issued on November 25.
The payments company intends to leverage the expanding potential of tokenized finance through this new partnership. According to McKinsey data, tokenized assets are expected to reach $16 trillion in value by 2030, with over $1 billion in assets under management for tokenized money market funds.
On November 27, XRP is leading the cryptocurrency market's recovery, rising 4.7.5% in the past day to trade at $1.45, according to CoinMarketCap data.
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