The CoinShares Physical XRP offers investors a regulated, accessible way to gain exposure to Ripple’s XRP without the complexities of managing digital wallets or navigating cryptocurrency exchanges. Designed for both retail and institutional investors, this exchange-traded product (ETP) mirrors the price performance of XRP through fully backed physical holdings, making it a compelling option in the growing digital asset investment landscape.
What Is the CoinShares Physical XRP?
The CoinShares Physical XRP (WKN: A3GRUE) is an exchange-traded note (ETN) that tracks the value of Ripple's native cryptocurrency, XRP, using a physical replication method. This means the issuer, CoinShares, holds actual XRP in secure custody to back the ETP’s value—ensuring a direct 1:1 correlation with the underlying asset.
Launched on April 13, 2021, and denominated in USD, this product is domiciled in Jersey and available for trading on major German stock exchanges. With a total expense ratio (TER) of 1.50% per annum, it provides a transparent cost structure compared to many crypto funds or actively managed products.
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One of its biggest advantages? You don’t need a crypto wallet or exchange account. Investors can buy and sell shares just like stocks or ETFs through their regular brokerage accounts—making it ideal for traditional investors looking to diversify into crypto with familiar tools.
Understanding Ripple (XRP): More Than Just a Cryptocurrency
Unlike Bitcoin or Ethereum, Ripple (XRP) isn’t built on a decentralized blockchain in the traditional sense. Instead, it operates on the RippleNet payment protocol, designed specifically to streamline cross-border financial transactions between banks and financial institutions.
Traditional international payments rely on nostro and vostro accounts—correspondent banking arrangements that are slow, costly, and inefficient. Ripple aims to replace this outdated system by enabling near-instant settlements with minimal fees using XRP as a bridge currency.
Because of its focus on institutional adoption and banking efficiency, XRP has earned the nickname “the Bitcoin of banks.” Major financial institutions around the world have tested or integrated Ripple’s technology to improve liquidity management and reduce transfer times from days to seconds.
This real-world utility differentiates XRP from many speculative cryptocurrencies and gives it strong use-case credibility in global finance.
About the Issuer: CoinShares – A Pioneer in Digital Asset Investing
CoinShares is one of the earliest and most respected names in regulated digital asset investment products. Since its founding, the company has been at the forefront of innovation:
- In 2014, CoinShares launched the world’s first regulated Bitcoin hedge fund in the U.S.
- By 2015, they introduced Europe’s first exchange-traded crypto product—an ETP tracking Bitcoin.
- Today, CoinShares offers a broad suite of crypto ETPs, blockchain-focused ETFs, institutional advisory services, and in-depth research reports.
Their commitment to transparency, security, and regulatory compliance has made them a trusted partner for investors seeking professional-grade access to digital assets.
With the CoinShares Physical XRP, they extend that same rigor—providing audited custody solutions, regular reporting, and full collateralization of all issued shares.
Investing in CoinShares Physical XRP: Lump Sum vs. Savings Plan
Whether you're planning long-term wealth building or making a strategic one-time investment, the CoinShares Physical XRP fits into various strategies.
Many German brokers offer cost-free savings plans (Sparpläne) for select crypto ETPs, including those issued by CoinShares. While some platforms charge a flat fee per transaction (e.g., 1.50% per installment), others provide zero-commission purchases, especially during promotional periods.
Here’s what you might expect when investing €100 monthly:
| Investment Type | Transaction Fee | Annual Cost on €1,200 Invested |
|---|---|---|
| Paid Savings Plan | 1.50% per rate | €18 |
| Free Savings Plan | 0.00% | €0 |
| One-Time Purchase | Varies by broker | Typically low or free |
While the ETP itself carries a 1.50% annual expense ratio, your trading platform may add additional fees unless you choose a broker offering free ETP savings plans. Always compare platforms to maximize cost efficiency.
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Frequently Asked Questions (FAQ)
Q: Do I own actual XRP when I invest in CoinShares Physical XRP?
A: No. You own shares in an exchange-traded note backed by real XRP held in custody. While you don’t control the tokens directly, your investment value moves exactly with XRP’s market price.
Q: How are gains taxed in Germany?
A: In Germany, private investors benefit from tax-free gains if they hold the ETP for more than one year. Short-term profits may be subject to income tax depending on individual circumstances. Always consult a tax advisor for personalized guidance.
Q: Is the CoinShares Physical XRP safer than buying XRP on an exchange?
A: For many investors, yes. The ETP is regulated, held in a traditional securities account, and protected under investor compensation schemes—unlike crypto exchanges, which aren’t always covered by such protections.
Q: Can I trade the CoinShares Physical XRP outside Germany?
A: Yes. While primarily listed on German exchanges like Xetra, it can often be accessed via international brokers that support foreign-listed ETPs.
Q: What happens if CoinShares goes bankrupt?
A: The underlying XRP assets are held in a separate custodial entity, meaning they should remain protected from the issuer’s creditors. This structural safeguard enhances investor protection.
Q: Does this ETP pay dividends?
A: No. XRP does not generate yield or dividends, and neither does the ETP. Returns are purely based on price appreciation.
Why Consider This ETP Over Direct Crypto Ownership?
For investors wary of exchange risks, wallet security issues, or technical complexity, the CoinShares Physical XRP removes key barriers:
- No need for private keys or seed phrases
- No exposure to exchange hacks
- Integration with existing brokerage accounts
- Regulatory oversight and reporting
- Eligibility for tax-advantaged accounts (e.g., depot savings plans)
It’s particularly attractive for conservative investors or those new to digital assets who want exposure without stepping into unregulated territory.
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Final Thoughts: A Bridge Between Traditional Finance and Digital Assets
The CoinShares Physical XRP represents a powerful convergence of traditional investment infrastructure and next-generation digital currencies. By offering physical backing, regulatory clarity, and seamless trading access, it lowers the entry barrier for mainstream adoption.
As Ripple continues to push boundaries in global payments and financial inclusion, products like this ETP allow investors to participate in its growth story through familiar, secure channels.
Whether you're building a diversified portfolio or exploring crypto for the first time, the CoinShares Physical XRP stands out as a professionally managed gateway to one of the most institutionally focused digital assets in the market.
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