The growing interest in XRP among institutional investors has been acknowledged by Ryan Rasmussen, who serves as the Head of Research at Bitwise.
Rasmussen pointed out that a team managing billions of dollars has included Ripple’s XRP in its investment portfolio, alongside assets such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
When questioned about the shift seen among institutions towards XRP, Rasmussen commented,
“XRP has established a strong brand presence over its decade-long existence, navigating through various market cycles. Its effective institutional marketing strategies have also played a key role.”
Several prominent institutions, including SBI Shinsei Bank, have publicized collaborations with Ripple, the company behind XRP, to facilitate cross-border remittances, further contributing to the growing institutional acceptance.
Recognizing the increasing interest in the altcoin and its technology, CryptoCrypto suggested that XRP could pose a formidable challenge to well-established tokens like Bitcoin and Ethereum.
XRP Poised to Enter the Premier League of Assets
Bitcoin and Ethereum continue to dominate the realm of institutional digital asset adoption, mainly fueled by the approval of spot exchange-traded funds (ETFs) in the United States.
These approvals have paved the way for institutional investments in both Bitcoin and Ethereum, with the total Assets Under Management (AUM) of spot BTC ETFs surpassing $122 billion and spot ETH ETFs reaching $10.21 billion since their inception.
With a rising interest from institutional investors in XRP, the asset stands to benefit from similar trends in the foreseeable future.
XRP has recently attracted attention due to its robust market performance, with reports indicating minimal downtime of its ledger, operating efficiently for over 110,000 hours since its inception in 2012, achieving a remarkable 99.99% operational efficiency.
These indicators point towards significant growth potential for the coin. Notably, XRP surged to $3.40 on January 13th, aiming to surpass its previous all-time high of $3.84 recorded back in 2018.
Green Signal for XRP as ETFs Approach
The potential launch of an XRP ETF could mark a crucial milestone in the institutional and regulated adoption of XRP.
Grayscale has taken the lead by initiating the process to convert its XRP Trust into an XRP ETF, which is anticipated to be listed on the New York Stock Exchange.
In addition to Grayscale, other institutions like CoinShares and Bitwise have also submitted filings for XRP ETFs.
If these proposals get the green light, it could trigger a significant surge in XRP prices as more institutional capital flows into the asset, potentially reaching a billion-dollar AUM within a short span, reflecting the success witnessed by Bitcoin and Ethereum ETFs.
The ongoing bullish momentum is sweeping XRP, with daily gains surpassing 20%; however, the rally has yet to be fully confirmed.
CryptoCrypto’s recent analysis has pointed out potential risks of a short-term downturn stemming from various economic factors, including the ongoing discussions surrounding U.S.-China tariffs.