In recent developments, institutional investors are increasingly considering Ripple (XRP) as a strategic asset to diversify their cryptocurrency portfolios beyond Bitcoin (BTC).
According to finance expert Linda P. Jones, author of 3 Steps to Quantum Wealth, XRP has outperformed Bitcoin by 212% since November 2023 and has surged approximately 250% against Ethereum in the same period. XRP’s price recently surged past $2.30 after a modest 0.86% increase in the last 24 hours, bringing its market capitalization to $134 billion. Meanwhile, Bitcoin held steady at around $83,000 after a 6.78% decline over the past week. “Institutions will diversify out of Bitcoin and Ethereum only and add XRP ETFs to their portfolio,” Jones stated, emphasizing the growing interest in XRP as a viable investment option.
As highlighted by CNF, financial giants such as Franklin Templeton and 21Shares have filed for XRP Exchange-Traded Funds (ETFs) in the U.S.
Currently, there are 15 proposed XRP ETFs, surpassing Bitcoin ETF filings, which stand at 11. This shift suggests that institutional investors are beginning to recognize XRP’s stability and growth potential, looking beyond traditional assets like Bitcoin. Bitcoin ETFs have recorded $35.4 billion in net inflows since receiving approval from the Securities and Exchange Commission (SEC) in January 2024, and analysts believe XRP ETFs could exceed this figure upon approval. “Requests for XRP ETFs are filed with the SEC because financial companies anticipate demand for them,” Jones added.
XRP’s Growing Legitimacy
Regulatory clarity has significantly boosted institutional confidence in XRP, especially following a recent closed-door meeting between the Securities and Exchange Commission (SEC) and Ripple Labs, sparking speculation about a potential settlement in the long-standing lawsuit against Ripple. This meeting comes on the heels of the SEC’s decision to close investigations into other crypto-related lawsuits involving Uniswap, Robinhood, and Coinbase, signaling a potential shift in regulatory approach. A favorable resolution for Ripple could pave the way for broader adoption of XRP among institutions. Adding to this momentum, President Donald Trump announced the creation of a Crypto Strategic Reserve, positioning the United States as the “crypto capital of the world.” Initially set to include Bitcoin, Ethereum, Ripple, Solana (SOL), and Cardano (ADA), the reserve later prioritized Bitcoin over other assets.
Trump’s acknowledgment of XRP has further boosted its legitimacy, with Linda Jones highlighting its inclusion in the U.S. Digital Asset Stockpile solidifies its role as a financial asset. As institutions seek to mitigate risks associated with a Bitcoin-centric portfolio, XRP is positioned to play a larger role in financial markets as a facilitator for faster and cheaper cross-border payments with its consensus mechanism.