The growing interest of institutional investors in XRP was recognized by Ryan Rasmussen, who serves as the Head of Research at Bitwise. He highlighted the inclusion of Ripple’s XRP in the asset portfolios of a team managing billions of dollars, in addition to assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
When addressing the shift in institutional behavior towards XRP, he commented that:
“XRP enjoys strong brand recognition, having withstood market volatility over the past decade. Its success in attracting institutional investors can be attributed to effective marketing strategies.”
Noteworthy collaborations, such as the partnership between SBI Shinsei Bank and Ripple for cross-border transactions, are contributing to the increasing institutional embrace of XRP.
Observing the rising interest in this altcoin and its underlying technology, there are prospects for XRP to pose a significant challenge to established tokens like Bitcoin and Ethereum.
XRP Poised to Enter the Elite Group of Assets
Bitcoin and Ethereum continue to dominate institutional investment in the cryptocurrency realm, primarily fueled by the approval of spot exchange-traded funds (ETFs) in the United States.
The green light provided for these assets through ETF approvals has encouraged institutional participation, resulting in over $122 billion in total assets under management (AUM) for spot BTC ETFs and $10.21 billion for spot ETH ETFs.
Given the surging interest from institutional investors, XRP could potentially follow a similar trajectory.
Recent market performance has brought XRP into the spotlight. Reports indicate that XRP’s ledger has operated with minimal downtime, providing efficient transaction facilitation over the years.
An important milestone was reached when XRP hit $3.40 on January 13th, aiming to surpass its previous all-time high of $3.84 established in 2018.
Bright Prospects Ahead for XRP with ETFs on the Horizon
The possibility of an XRP ETF debut represents a significant advancement towards institutional adoption and regulatory acceptance of the asset.
Leading the charge is Grayscale, which has filed for the conversion of its XRP Trust into an XRP ETF set to be listed on the New York Stock Exchange.
Joining forces with Grayscale, other institutions like CoinShares and Bitwise have also initiated the process of filing for XRP ETFs.
If these ETF proposals are approved, it is likely to trigger a bullish trend for XRP, attracting substantial institutional funds and potentially reaching over a billion dollars in AUM within a short timeframe, mirroring the success seen with Bitcoin and Ethereum ETFs.
Although the current market sentiment is positive for XRP, with daily gains surpassing 20%, the full affirmation of a rally is yet to be confirmed.
Recent analysis by CryptoCrypto has raised concerns about a potential short-term downturn, influenced by various economic factors including the ongoing discussions around U.S.-China trade tariffs.