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Swiss Crypto Asset Manager 21Shares Announces Removal Of XRP From Its ETPs

Arthur Webb

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Another bad news for XRP the native digital token of Ripple as the Swiss cryptocurrency asset manager 21Shares has announced the removal of the fourth-ranked digital currency from the list of its Exchange-Traded Products (ETPs). This move by 21Shares has been taken in the wake of the recent lawsuit filing of the United States Securities and Exchange Commission (SEC) against the San Francisco-based blockchain payments firm Ripple.

As reported by The Block, Bitwise Select 10 ETP or “KEYS” and Crypto Basket Index ETP or flagship “HODL” are some of those products of 21Shares that have been affected. In addition to these products, the company is also checking out its AXRP product. However, it has not taken any decision regarding the removal of this product, the firm said.

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While explaining why the company has made this decision as 21Shares does not have any Exchange-Traded Product listed on any United States exchange, the Chief Executive Officer (CEO) of the company Hany Rashwan said that the index rules of the firm do not permit the inclusion of any asset “that is a security and any token that might have liquidity issues.”

Adding more to his comments, Rashwan said:

The risk on both sides is high, especially with a number of large over-the-counter (OTC) trading desks exiting the XRP market, specifically Jump Trading and Galaxy Digital.

Prior to 21Shares, various digital currency exchanges have halted the trading of XRP on their trading platforms. These include the cryptocurrency exchange CrossTower, the Chicago-based crypto exchange Beaxy, and the Hong Kong-based digital currency exchange OSL. The Luxemburg-based cryptocurrency exchange Bitstamp was the first major crypto exchange to halt the trading and deposit of XRP. In addition to these crypto exchanges, the Bitwise Asset Management firm also recently liquidated its position in XRP.