XRP News: Finance Expert Explains Why Institutions Are Moving from Bitcoin to XRP

A prominent financial expert, Linda Jones, has proposed that institutional investors will soon diversify their cryptocurrency portfolio beyond Ethereum and Bitcoin by investing in XRP exchange-traded funds (ETFs). Franklin Templeton’s recent application for an XRP ETF has pushed the total count of proposed XRP ETFs up to 15, proving the increasing demand for XRP from leading asset managers.

Shift in Market Strategy

Jones, the author of 3 Steps to Quantum Wealth, opines that institutional investors are slowly starting to look past Bitcoin and Ethereum as market forces evolve. Jones cited XRP’s recent relative strength against Bitcoin and Ethereum as an indication of growing institutional investment in the asset. She asserted that as the crypto space evolves, investors will look for greater exposure to diversify their holdings.

Franklin Templeton’s move to apply for an XRP ETF is a significant development. With 15 XRP ETF filings, XRP has taken the lead in proposed ETFs, overtaking Bitcoin at 11 and Ethereum at 8. This indicates a definitive trend towards institutional interest in XRP as an investment vehicle.

Growing Institutional Demand

Matt Hougan, Bitwise’s Chief Investment Officer, noted that XRP ETF filing growth indicates a robust institutional desire for XRP-backed investment solutions. As Hougan noted, asset managers are not usually on the hook for filing ETFs unless there is demonstrable demand in the marketplace. Franklin Templeton’s action and those taken by other asset managers demonstrate that institutional investors are viewing XRP with more and more consideration as an investible solution for their portfolios.

Skepticism Regarding Demand

Even though the filings for ETFs increased, some analysts questioned the overall demand for XRP ETFs. The Wolf of All Streets podcast host, Scott Melker, was skeptical if these ETFs would receive meaningful investments upon approval.

Melker’s doubt arises from the mixed record of Ethereum ETFs. Bitcoin ETFs have seen $35.4 billion in net inflows since January 2024, but Ethereum ETFs, which were introduced in July 2024, have gained only $2.63 billion. Melker had contended that investors could be hesitant in adopting XRP ETFs, just as Ethereum ETFs were adopted slowly.

Trust in XRP’s Performance

Jones is hopeful about the potential of XRP. She pointed out that since November 2023, XRP has performed better than Bitcoin by 212% and about 250% compared to Ethereum. Jones opines that this good performance will ultimately propel institutional investors toward XRP ETFs.

As Jones holds, the sound record of XRP concerning other major cryptocurrencies will be a source of increased institutional confidence. She holds that XRP ETFs once approved will present a useful diversification choice for institutional portfolios.

Future Prospects for XRP ETFs

The rising number of XRP ETF filings indicates that XRP-based investment products may soon be a significant component of the cryptocurrency market. Although skepticism is still present, the rising participation of large asset managers indicates that institutional interest in XRP is picking up steam. If approved, XRP ETFs would offer institutional investors new diversification options and enhance XRP’s position in the overall crypto market.

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