XRP, the third largest crypto by market cap, has gained tremendous attention lately for numerous reasons, including the possibility of the launch of XRP Spot ETFs in 2025. Notably, in the last one year, the XRP market has showcased an impressive growth of 395%.
A recent revelation by Ryan Rasmussen, the head of research at Bitwise Invest, indicates that top institutional players are closely watching developments related to the XRP market.
Wealth Management Teams Want XRP, BTC and ETH in Client Portfolios
Rasmussen revealed that a prominent wealth management team is interested in allocating XRP in their clients’ portfolios. Emphasising this team’s extreme confidence in the future of top cryptos, he noted that the team personally holds Bitcoin, Ethereum, Solana, XRP and many more.
SEC’s Approval of Bitcoin and Ethereum ETFs Boost Industrial Adoption
2024 was an excellent year for the crypto industry, especially for Bitcoin and Ethereum. In the last one year, BTC and ETH have surged by at least 129.5% and 18.9%, respectively.
The SEC’s BTC Spot ETF approval and its ETH Spot ETF approval were the two significant developments witnessed last year. These developments influenced the entire crypto industry, as they paved the way for the entry of more institutional players into the sector. The total market cap of the cryptocurrency sector experienced an impressive growth of 98.13% in 2024.
Interestingly, bettors at Polymarket suggest that there is an 80% probability that an XRP Spot ETF will be approved in 2025.
Experts believe that if the SEC gives approval for XRP Spot ETFs, it will not only benefit the XRP market, but also the entire crypto market.
Compliance Hurdles Still Exist for Wealth Firms
Expressing the uncertainty around whether wealth management firms will use XRP Spot ETF products this year, Rasmussen pointed out that even though Bitcoin Spot ETFs were approved in early 2024, many prominent wealth management firms have not yet approved these products for client portfolios.
XRP’s Future: A Quick Analysis
Several prominent institutional players have expressed their interest in launching XRP Spot ETFs. The US Securities and Exchange Commission is currently considering numerous applications seeking approval for XRP Spot ETFs.
Reports suggest that CME Group is planning to launch XRP futures contracts.
XRP’s growing institutional interest signals a promising future, especially with potential ETF approvals and CME’s plans for futures contracts. While compliance hurdles still exist for wealth management firms, the increasing demand for XRP, Bitcoin and Etheruem in client portfolios highlights crypto’s expanding role in traditional finance. If the SEC approves XRP Spot ETFs, it could significantly boost adoption, benefiting both XRP and the broader crypto market.
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