Just like Amun’s other physically backed crypto ETPs, the underlying crypto assets will be held by the company in cold storage, equal to 100% of the note’s value, according to Amun.
Ripple is the third largest cryptocurrency in terms of market cap with $13.9bn, just behind Ethereum with $16.1bn and crypto giant Bitcoin with $82.5bn.
AXRP has listed on the SIX Swiss Exchange with an annual fee of 2.5%.
The coin is currently priced at $0.33, significantly lower than its all time high of $3.84 back in January 2018. The crypto market remains relatively volatile. Over the last year, the value of Ripple is down 31.3%, according to Coingecko, but the price has since spiked by 7.1% in the last 24 hours.
Amun’s crypto basket ETP, HODL, is comprised of five different coins: Bitcoin, Bitcoin Cash, Ethereum, Ripple and Litecoin. While the crypto market remains volatile, the coins are also highly correlated. If Bitcoin drops in value, so does the rest of the market. Bitcoin in the last 24 hours has seen its largest spike since 2017, surging from $4,200 to $4,800. As a result, Amun’s HODL, which is weighted 50% Bitcoin, also surged 11.16% in the last 24 hours. The ETP had not performed very well prior to this as the ETP was valued $0.01 less than what it was at the beginning of the year.
The graph above shows HODL’s price year-to-date. Starting the year at $13.63, the value fell to $11.64 over the course of January, before having a positive February and a quiet March. The value now remains at $15.14 following its jump from $13.62 overnight.