XRP has emerged as a focal point for investors and institutions alike. As the third-largest cryptocurrency by market capitalization, XRP has seen remarkable growth of 395% over the past year, driven by increasing institutional interest and speculation about the potential launch of XRP Spot ETFs in 2025.
Institutional Demand for XRP on the Rise
Ryan Rasmussen, Head of Research at Bitwise Invest, recently disclosed that a prominent wealth management team is keen on adding XRP to client portfolios. This signals growing confidence in XRP’s long-term potential. According to Rasmussen, the team itself holds Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP, further emphasizing the increasing institutional appetite for crypto investments.
Bitcoin and Ethereum ETFs Set the Stage for XRP
The cryptocurrency sector witnessed significant regulatory advancements in 2024, particularly with the approval of Bitcoin and Ethereum Spot ETFs by the U.S. Securities and Exchange Commission (SEC). These approvals catalyzed market growth, with BTC and ETH surging by 129.5% and 18.9%, respectively, and the total crypto market cap soaring by 98.13%.
Following these developments, the probability of an XRP Spot ETF approval in 2025 has gained traction. Polymarket bettors currently estimate an 80% likelihood of such an approval, further fueling investor optimism.
Regulatory Hurdles and Institutional Challenges
Despite the enthusiasm surrounding XRP Spot ETFs, challenges remain. Rasmussen pointed out that while Bitcoin Spot ETFs gained regulatory approval in early 2024, many top wealth management firms have yet to integrate these products into client portfolios due to compliance concerns. This raises questions about how quickly institutional investors will adopt XRP Spot ETFs if they receive SEC approval.
Institutional interest in XRP is growing, with major financial players exploring the potential of launching XRP Spot ETFs. Additionally, reports suggest that CME Group is considering launching XRP futures contracts, a move that would further strengthen XRP’s position in the financial ecosystem.
With increasing demand from institutional investors and a potential SEC approval on the horizon, XRP’s future appears promising. If an XRP Spot ETF is approved, it could significantly boost adoption, benefiting both XRP and the broader cryptocurrency market while cementing crypto’s role in traditional finance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
