XRP is trading at $2.02 as of writing, reflecting a 7.57% decrease in the last seven days and a 7.92% decrease over the past 30 days. Despite market fluctuations, the coin is showing resilience against deeper losses, supported by new inflows that sustain demand. U.S. spot XRP ETFs have recorded 16 consecutive days of net inflows, driving total assets towards $1 billion.
WisdomTree highlights that XRP is the only major token demonstrating a year-to-date gain during a month where the broader cryptocurrency market has experienced a downturn. This notable resilience has paved the way for Bitwise's recent strategic move toward Ripple.
Bitwise CIO: XRP's Regulatory Landscape Has Transformed
Matt Hougan, Chief Investment Officer at Bitwise, elaborated on the firm's decision to launch an XRP ETF, a move that was years in the making. He explained that the primary obstacle was the Securities and Exchange Commission (SEC) lawsuit, which cast a significant regulatory cloud over XRP. This uncertainty deterred institutional investors and major companies from building products or investing in an asset that faced potential regulatory challenges.
Hougan recalled how the lawsuit hindered adoption, not due to any inherent weaknesses in XRP's technology, but because the prevailing uncertainty made every decision risky. Ripple struggled to secure the partnerships its community anticipated, investors remained hesitant, developers kept their distance, and institutions avoided the asset until the legal proceedings concluded.
According to Hougan, the entire dynamic shifted dramatically following the resolution of the legal battle in August. He believes that XRP now stands on equal footing with other large-cap digital assets and has a genuine opportunity to pursue the global use cases championed by Ripple's community.
He further noted that once the regulatory threat dissipated, Bitwise acted swiftly. The firm was prepared with the necessary infrastructure to offer a straightforward and compliant entry point for institutions that had been awaiting regulatory clarity. This gateway is now available in the form of the XRP ETF.
XRP ETF Launch Demonstrates Significant Investor Demand
The launch of Bitwise's XRP ETF garnered substantial attention. On its first day, the product recorded $25.7 million in trading volume and amassed $107.6 million in assets under management. Hougan stated that this strong initial performance confirms that institutional interest in XRP was never lacking; rather, investors were awaiting a secure and compliant investment vehicle that aligned with their mandates. ETFs effectively address this need, offering funds, family offices, and traditional financial firms a familiar and accessible way to gain exposure without direct technical complexities.
This positive momentum continued into the first three days of trading, with Bitwise funds receiving $135 million in inflows.
The streak of consistent inflows has now extended to 16 consecutive days across the U.S. market. The steady increase in total XRP ETF assets, approaching $1 billion, signifies a pivotal moment for Ripple and its associated ecosystem.
Bitwise's Rationale for XRP's Global Competitiveness
Hougan contends that the post-lawsuit environment is conducive to XRP's growth in cross-border finance. The XRP Ledger is described by many analysts as a robust and battle-tested network. The growing demand for regulated and compliant digital asset products aligns perfectly with Ripple's long-term strategic objectives. Institutions can now enter the market with confidence, while retail traders benefit from a clearer benchmark for price discovery. Increased liquidity is expected as new investment channels become available. XRP is now positioned to access the global capital flows from which it was previously excluded.
Institutional Investment Signals a New Era for XRP
XRP's sustained performance stands in contrast to the broader market's decline. While Bitcoin and Ethereum have shown weakness, XRP has maintained a stable position. Bitwise interprets this behavior as an indicator of quiet accumulation by investors. The advent of the ETF era has provided a new, accessible entry point for these investors. Hougan emphasizes that the message is clear: the market dynamics have shifted, the perceived risk has diminished, and the pathway for Ripple and XRP into global finance is now wide open.