The newly launched XRP Exchange Traded Fund has surpassed expectations, bringing in almost $900 million in institutional investment within just three weeks of trading. Since its mid-November launch, asset managers report that investor interest has remained strong, showing positive inflows on all trading days for 13 consecutive days.
Sandy Kaul, head of digital assets and industry advisory at Franklin Templeton, believes this surge indicates a shift in how investors are thinking. She mentions that asset managers are keen on getting involved with alternative assets that have new use cases. Kaul also noted that the data from ETF issuers is promising and suggests that XRP is becoming well-accepted in traditional finance.
Stablecoin integration strengthens market case for XRP
Kaul pointed out that the attraction to XRP isn’t just about ETF performance. She identified Ripple’s new stablecoin, RLUSD, as a significant factor enhancing XRP’s long-term potential. On the Paul Barron Podcast, she highlighted that XRP stands out among major networks for having both a native token and a stablecoin, which positions it well in the evolving payments landscape.
She elaborated that the stablecoin sector is becoming central to blockchain adoption, and as businesses and consumers increasingly transition to the Web3 model, automated transactions will grow. These transactions require networks capable of high-volume and low-cost payments. Kaul asserts that XRP is suited for this transition, especially with its own stablecoin supporting both liquidity and payment needs.
Networks that can provide quick and cost-effective transfers, paired with stable assets, will be appealing to businesses. Kaul believes this mix bolsters the case for XRP and its supportive infrastructure. Given the rising interest in digital payments and tokenized finance, she sees XRP entering a more competitive phase within the stablecoin market.
Institutional legitimacy accelerates
As enthusiasm for XRP ETFs rises, more institutions are reassessing their role in diversified cryptocurrency portfolios. Kaul observed early indicators suggesting XRP is gaining traction as a legitimate asset among leading financial firms. She made comparisons to both Bitcoin and Ethereum, noting that while those remain dominant, XRP’s recognition in this space is growing.
At the time of this report, XRP is trading at approximately $2.02, reflecting a decline of 4.29% over the previous 24 hours.
XRP price chart, source: coin market cap
