XRP is quickly becoming the star of cryptocurrency’s exchange-traded fund boom.
Spot ETFs backed by the fourth-largest crypto have pulled in $898 million since their blockbuster launch in November, SoSoValue data shows. That is triple Solana products’ $270 million in the same time frame.
Meanwhile, Bitcoin ETFs saw $2.6 billion in selloffs, while Ethereum ETFs shed $691 million, DefiLlama data shows.
“The ETF boom will continue,” Bitwise Asset Management executive Katherine Dowling told DL News. “It is a good starter kit for many investors to gain exposure.”
“Both Solana and XRP have promising fundamentals that make sense and the ETF launches should push demand and therefore prices higher,” Dowling said.
At the moment, both tokens trade over 40% below their all-time highs set earlier this year as the overall crypto market reels from a $1.2 trillion downturn.
‘More will be coming’
The predictions land as Vanguard — the $11 trillion asset management colossus — changed course and finally launched spot crypto ETF trading last week, becoming the latest institutional stalwart to jump into the ring.
Vanguard, the world’s second-largest asset manager, was seen as Wall Street’s most stubborn holdout. It now allows more than 50 million of its brokerage clients to buy and sell regulated crypto ETFs.
The move was a major concession to investor demand. The firm joins fellow giants BlackRock, Fidelity, and Franklin Templeton, which have all jumped on the crypto ETF bandwagon over the past two years.
“It took a new CEO plus more than a year after that hire to move this Vanguard ship to a yes,” Dowling said.
“They are not too late as there is more capital out there to come in but there is no doubt they watched a lot of capital leave to ports accepting the crypto ETF ships,” she added.
When asked about BlackRock sitting out XRP ETFs so far, Dowling cited “a host of factors focused on market demand and liquidity. Perhaps even regulatory.”
“But Blackrock also knows that with their name they can come in late and still take market share. Reality is they don’t need to be first to get AUM and can wait and see,” she said.
“All of the tokens are scrambling to get issuers to launch ETFs because this is ultimately beneficial to the token because in theory the ETF should increase demand for the token and therefore price,” Dowling said.
“More will be coming.”
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email at lance@dlnews.com.
