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DeFi Technologies Inc. announced the upcoming launch of an exchange-traded product (ETP) based on ‘s XRP, expanding its range of digital asset investment offerings. The ETP is expected to launch in early December 2023 on a European exchange through Valor Inc, the DeFi subsidiary, to meet growing demand from European investors for diversified exposure to cryptocurrencies.
The company’s portfolio already includes a variety of innovative financial products, such as Zero and Zero, both fully hedged and offered without management fees. The addition of the XRP ETP is part of Valor’s broader strategy to provide investors with access to a range of digital assets in a regulated format. This initiative follows the success of DeFi Technologies’ funding round earlier this month, which raised CA$1,890,000 through an oversubscribed private placement.
Marco Infuso, Director of Sales at Valour, highlighted the importance of the new XRP ETP, noting that it complements their existing offerings such as (UNI) and (ADA) ETPs, as well as eco-friendly options such as Bitcoin Carbon Neutral (BTCN). He also highlighted the appeal of XRP for its use in facilitating fast and profitable international transactions via RippleNet.
As DeFi Technologies continues to innovate in the digital asset space, the company has indicated that it plans to create additional ETPs with low or no management fees. These developments are part of their ongoing efforts to provide traditional financial markets investors with structured products that provide exposure to various cryptocurrencies and blockchain technologies.
InvestingPro Insights
As DeFi Technologies Inc. prepares for the launch of its XRP exchange-traded product (ETP), investors are closely monitoring the company’s financial health and market position. With a solid market capitalization of USD 1.49 trillion, the company is a significant player in the technology and digital assets sector. The P/E ratio, which measures a company’s current stock price relative to its earnings per share, is currently 73.28, reflecting investors’ optimism about future growth prospects. Taking into account the trailing twelve months from the third quarter of 2023, the P/E ratio tightens slightly to 67.94.
InvestingPro’s guidance suggests that the company’s revenue growth is a key factor to watch, with a solid 10.32% increase in the trailing twelve months to Q3 2023. This is also supported by quarterly growth in revenue by 12.57% in the third quarter of 2023, indicating a strong and consistent upward trajectory. Furthermore, the company’s gross profit margin stands at an impressive 46.24%, demonstrating its ability to maintain profitability despite its expansion efforts.
For those who want to dig deeper, InvestingPro offers a host of additional tips – 15 more InvestingPro tips are available for subscribers who want to dig deeper into the company’s financials and market potential. Now is a good 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 next earnings release date, set for February 1, 2024, which could provide additional insight 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, slightly below the analyst’s target fair value of $174, there appears to be room for growth and optimism around DeFi’s market valuation Technology.
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