As of July 3, 2025, the CoinShares Physical XRP ETC (Exchange Traded Crypto) provides investors with a regulated and accessible means to gain exposure to the price of XRP, a prominent digital asset, without the complexities of direct cryptocurrency ownership. This product tracks the performance of XRP and is structured as a physically backed exchange-traded commodity, meaning it directly holds the underlying XRP tokens.
This article provides a detailed overview of its performance metrics, key fund data, and essential risk indicators to help you make an informed assessment.
Detailed Performance Overview
The performance of CoinShares Physical XRP is displayed in EUR and illustrates significant volatility characteristic of the digital asset space. Here is a breakdown of its returns across various timeframes.
Periodic Performance:
- 1 Week: +7.03%
- 1 Month: -0.33%
- 3 Months: +8.59%
- 6 Months: -18.30%
- 1 Year: +336.24%
- 3 Years: +519.65% (83.67% p.a.)
- Since Inception (April 13, 2021): +26.27% (5.68% p.a.)
Annual Performance:
- Year to Date (2025): -5.69%
- 2024: +253.79%
- 2023: +76.94%
- 2022: -57.76%
- 2021: -43.74%
These figures highlight the asset's high-growth potential alongside its substantial capacity for drawdowns, underscoring its classification as a high-risk investment.
Essential Fund Information
Understanding the fundamental characteristics of this ETC is crucial for any potential investment decision. The following table summarizes its core data.
| Attribute | Detail |
|---|---|
| Total Expense Ratio (TER) | 1.50% |
| Index Replication | — |
| Replication Type | Other (Physical) |
| Use of Income | Accumulating |
| Fund Size | €187.52 Million |
| Inception Date | April 13, 2021 |
| Fund Currency | USD |
| Currency Hedge | No |
| Fund Domicile | Jersey |
| SFDR Regulation | No Information |
The Total Expense Ratio (TER) of 1.50% is a critical factor to consider, as it annually reduces the overall returns for investors. This covers management and operational fees. The fund is physically backed, meaning it holds actual XRP, and is domiciled in Jersey.
Risk and Analysis Indicators
This ETC carries significant risk, and several metrics help quantify its volatility and market behavior. The following data provides insight into its risk profile.
Key Risk Metrics (as of latest data):
- Volatility (1 Year / 3 Year): 258.13% / 159.68%
- Maximum Drawdown (1 Year / 3 Year): -32.31% / -32.66%
- Sharpe Ratio (1 Year / 3 Year): 1.17 / 0.78
- Number of Holdings: 21.13
A high volatility figure indicates large price swings, while the maximum drawdown shows the largest peak-to-trough decline experienced. The Sharpe Ratio measures risk-adjusted return; a higher value is generally better. Given the highly speculative nature of such assets, conducting thorough research is paramount. For those looking to delve deeper into market analysis, you can explore more advanced market strategies.
Portfolio Composition and Index
Unlike traditional equity ETFs, the composition of this physically backed ETC is straightforward.
- Reference Index: N/A (Not Applicable in a traditional sense, as it tracks the spot price of XRP).
- Holdings: The fund's primary holding is physical XRP. The "Liquidities and Other Positions" figure of 0 suggests the fund is fully allocated to the underlying asset.
Frequently Asked Questions
What is CoinShares Physical XRP?
It is an Exchange-Traded Commodity (ETC) that is physically backed by XRP. This allows investors to buy and sell exposure to XRP's price through a traditional stock brokerage account on regulated exchanges, simplifying the investment process.
How does the Total Expense Ratio affect my investment?
The TER of 1.50% is an annual fee deducted from the fund's assets. It directly impacts your net returns. For example, if XRP's price increases 10% in a year, the net return for an investor would be approximately 8.5% after accounting for the TER.
What are the main risks of investing in this ETC?
The primary risks include the high volatility of the underlying cryptocurrency (XRP), regulatory changes impacting digital assets, counterparty risk associated with the fund's structure, and the specific risks of being domiciled in Jersey. The significant drawdowns shown in its history demonstrate the potential for substantial losses.
Is this product suitable for long-term investing?
Given its extreme volatility and relatively short track record since its 2021 inception, it is generally considered a high-risk, speculative investment. It may suit a small, risk-tolerant portion of a diversified portfolio but is unlikely to be a core long-term holding for conservative investors.
How does physical backing work?
The fund issuer purchases and holds actual XRP tokens in secure custodian wallets. Each unit of the ETC represents a direct claim on a specific amount of these held XRP tokens, ensuring the product's value moves in line with the market price of XRP.
Why is there no reference index?
The ETC is designed to track the spot price of XRP, not a benchmark index of multiple securities. Therefore, its performance is measured directly against the market price of the cryptocurrency itself, making a traditional index designation not applicable.