Financial Advisors Show Interest in XRP Amidst ETP Growth, Citing Perceived Longevity and Applications

Financial advisors are showing increased interest in XRP, citing its perceived longevity and real-world applications, according to Bitwise Chief Investment Officer Matt Hougan. This trend coincides with a significant rise in XRP Exchange Traded Product (ETP) assets, which saw an 80% increase in the third quarter, reaching a record $1.77 billion on September 25.

XRP ETP Performance and Growth

Collectively, XRP ETFs have experienced 11 consecutive weeks of inflows, attracting approximately $76 million last week alone. Total cumulative inflows across all XRP ETFs have reached $1.79 billion, with current total net assets standing at $1.68 billion. Among individual funds, Bitwise’s XRP fund has garnered $677 million in cumulative inflows, while Franklin’s XRP fund has seen $501 million. In contrast, 21Shares’ XRP fund has experienced net outflows of $21.15 million, and Canary’s XRPC added $3.96 million on Monday.

Bitwise’s XRP fund, which charges a 0.34% fee and holds its assets with Coinbase Custody, filed an updated prospectus on September 28. This is a routine update required due to the continuous issuance of new shares for the fund.

Drivers of Advisor Interest

Matt Hougan explained that financial advisors are drawn to XRP due to its “enormous track record and background that gives people confidence it may be there in the future.” He further elaborated that XRP “fits into real-world applications that they can understand,” citing examples such as the stablecoin space, cross-currency transactions, and liquidity solutions. Developments like Ripple obtaining a bank charter were mentioned as evidence of its utility.

The perceived persistence of XRP is attributed by some in the crypto community to its established track record and the significant scrutiny it has endured. Analyst Xaif Crypto noted that XRP gained approximately 30% in August and about 2.10% in July, contributing to its recent performance.

XRP Price Context

Despite the positive inflows and recent monthly gains, XRP’s price performance presents a more complex picture. At the time of writing, XRP was trading around $1.50, up approximately 2% in the past 24 hours. Over the last 14 days, XRP had increased by nearly 7%, and across the past month, it was up almost 8%. However, XRP remains 47% lower than its price a year ago and 59% below its all-time high of $3.65.

While the growth in XRP ETP assets and the explanations for financial advisor interest suggest increasing confidence in XRP’s long-term viability and utility, it is important to note that XRP is not guaranteed to be a long-term investment, nor is it officially approved by any regulatory body for widespread use. The future price of XRP is also uncertain. The information presented reflects reported data and expert commentary, not investment advice.

Why This Matters

The significant rise in XRP ETP assets, coupled with explanations of its institutional appeal, suggests growing confidence among financial advisors in XRP’s long-term viability and utility. This trend highlights a developing approach by financial advisors to digital assets with established use cases and a history of scrutiny.

Broader Context

Bitwise Chief Investment Officer Matt Hougan’s remarks on XRP’s appeal are situated within the context of a substantial increase in XRP ETF net assets. This discussion follows a significant rise in XRP ETF net assets, which increased by 80% in the third quarter, reaching a record $1.77 billion on September 25.