Institutional Demand for XRP Surges as Ripple CEO Praises ETF Filings

Highlights:

• Ripple CEO announces institutional demand for XRP surges as firms like 21Shares file for XRP ETFs with the SEC. 
• Despite SEC challenges, institutional interest in XRP grows, highlighting confidence in the digital asset’s potential.
• ETF approvals could enhance XRP’s liquidity and adoption marking a positive shift in the crypto market.

Ripple CEO Brad Garlinghouse announced that XRP institutional demand has surged as major investment firms file for exchange-traded funds (ETFs). Several firms have filed applications with the U.S. Securities and Exchange Commission (SEC) to launch XRP ETFs. Garlinghouse stated, “ The message from the market is clear — XRP product institutional interest is stronger than ever.”

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The message from the market is clear – institutional interest in XRP products is stronger than ever. @BitwiseInvest, @CanaryFunds, and @21Shares (just this morning!) filed S-1s for XRP ETFs while @Grayscale launched an XRP Trust and filed to convert its multi-asset fund,… https://t.co/d5Icksw4Sj

— Brad Garlinghouse (@bgarlinghouse) November 1, 2024

Major Firms File for XRP ETFs

21Shares filed a Form S-1 with the SEC to register 21Shares Core XRP Trust. This aims to provide investors with direct exposure to XRP without the complexities of direct custody. Coinbase Custody Trust Company will hold the fund’s underlying XRP assets. If approved, the fund’s shares would be listed and traded on the Cboe BZX Exchange.

Bitwise and Canary Capital have also filed spot-based XRP ETFs, indicating a rising institutional demand. In response, Garlinghouse noted that Grayscale Investments relaunched its XRP Trust and seeks to convert its multi-asset fund, which includes XRP, into an ETF. These filings reflect growing market confidence in XRP despite regulatory challenges.

In addition to the filings, the CME Group launched an XRP reference rate and Bitnomial announced plans for an XRP futures product. These developments further underline the increasing institutional interest in XRP, which is gaining more legitimacy in traditional financial markets.  

Starting July 29, benefit from transparent pricing on two new cryptocurrencies as CME CF Internet Computer-Dollar and XRP-Dollar Reference Rates and Real-Time Indices are added to our expanding suite of benchmarks. https://t.co/1kn5BPZi4C pic.twitter.com/jqcJPInSt9

— CME Group (@CMEGroup) July 11, 2024

Regulatory Landscape and SEC Challenges

Despite ongoing legal battle with the SEC, XRP institutional demand soars as companies pursue ETF approvals. Ripple is at loggerhead with the SEC on whether XRP is a security. However, a federal court ruled that XRP is not inherently a security, marking a significant win for Ripple. Garlinghouse slammed the SEC’s continued efforts against the crypto industry, accusing it of disregarding court rules, eroding their credibility.

He emphasized that the market is moving forwad, and institutional interest in XRP remains strong regardless of regulatory obstacles. Garlinghouse believes that the SEC’s challenges have not deterred institutional investors. Instead, demand for XRP continues to grow, underscoring confidence in the digital asset’s potential.

XRP Ledger Sees Increased Activity

Ripple’s recent Q3 report indicated that XRP Ledger transaction volumes nearly doubled, reaching 172.6 million transactions. However, much of this increase involved small-volume microtransactions, often less than 1 XRP each, likely part of a spam messaging campaign. Despite this, the overall on-chain volume remained steady. 

The Q3 ‘24 XRP Markets Report is now live.
Last quarter saw major milestones and partnerships including the ETH ETF launch, rising speculation around the U.S. presidential election and the announcement of RLUSD exchange partners and advisory board. https://t.co/BHJ1QViLlH

— Ripple (@Ripple) November 1, 2024

Additionally, the average daily volumes for XRP trade on top exchanges ranged between $600 million and $700 million. The XRP/BTC ratio also rose by 27% over the quarter, another sign that XRP institutional demand surged. These metrics demonstrate robust trading activity.

The Total Value Locked in Ripple’s Automated Market Makers surged from $8.5 million to $16.2 million. These metrics indicate increasing adoption of XRP among both institutional and retail investors. Moreover, they demonstrate a broader use of XRP in various financial products.

As of press time, Ripple’s native token XRP is trading at $0.5108, down by 1.30% in the past 24 hours. The market capitalization and the trading volume stand at $29.05 billion and $801.64 million, respectively. 

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