DeFi Technologies Inc. has announced the upcoming launch of an exchange-traded product (ETP) based on Ripple's XRP, expanding its suite of digital asset investment offerings. The ETP is slated to debut in early December 2023 on a European exchange through Valour Inc., DeFi's subsidiary, catering to the growing demand among European investors for diverse cryptocurrency exposure.
The company's portfolio already features a variety of innovative financial products, such as Bitcoin Zero and Ethereum Zero—both fully hedged and offered without management fees. The addition of the XRP ETP is part of Valour's broader strategy to provide investors with access to a range of digital assets in a regulated format. This move comes on the heels of DeFi Technologies' successful funding round earlier this month, where they raised C$1,890,000 through an oversubscribed private placement.
Marco Infuso, Chief Sales Officer at Valour, highlighted the significance of the new XRP ETP, noting that it complements their existing offerings like Uniswap (UNI) and Cardano (ADA) ETPs, as well as environmentally conscious options such as Bitcoin Carbon Neutral (BTCN). He also underscored the appeal of XRP for its use in facilitating quick and cost-effective international transactions via RippleNet.
As DeFi Technologies continues to innovate within the digital asset space, they have indicated plans for more ETPs featuring low or non-existent management fees. These developments are part of their ongoing efforts to provide traditional financial market investors with structured products that offer exposure to various cryptocurrencies and blockchain technologies.
InvestingPro Insights
As DeFi Technologies Inc. gears up for the launch of its XRP exchange-traded product (ETP), investors are closely monitoring the company's financial health and market position. With a robust market capitalization of $1.49 trillion USD, the company stands as a significant player in the tech and digital asset industry. The P/E ratio, a measure of a company's current share price relative to its per-share earnings, is currently at 73.28, reflecting investor optimism about future growth prospects. Adjusting for the last twelve months as of Q3 2023, the P/E ratio tightens slightly to 67.94.
InvestingPro Tips suggest that the company's revenue growth is a key factor to watch, with a solid 10.32% increase over the last twelve months leading up to Q3 2023. This is further supported by a quarterly revenue growth of 12.57% in Q3 2023, indicating a strong and consistent upward trajectory. Additionally, the company's gross profit margin stands at an impressive 46.24%, showcasing its ability to maintain profitability amidst expansion efforts.
For those interested in further analysis, InvestingPro offers a wealth of additional tips – 15 more InvestingPro Tips are available for subscribers looking to delve deeper into the company's financials and market potential. Now is an opportune time to consider a subscription, as InvestingPro is currently offering a special Black Friday sale with discounts of up to 55%.
Investors are also keeping an eye on the upcoming earnings date set for February 1, 2024, which could provide further insights into the company's financial trajectory and the potential impact of the new XRP ETP on its portfolio. With the InvestingPro Fair Value estimate at $165.52 USD, slightly below the analyst target fair value of $174 USD, there appears to be room for growth and optimism surrounding DeFi Technologies' market valuation.
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