XRP The Next Big Crypto Spot ETF? Bitwise Outlines Key Observations
in latest blog postalAs Bitcoin and Ethereum spot ETFs achieve major milestones, Bitwise provides an overview of the crypto asset’s mainstream adoption. Let’s take a deeper look at why it thinks XRP can stand out and how it holds huge upside potential.
2024 is an extraordinary year for cryptoassets to enter the mainstream era. While Bitcoin and Ethereum spot ETFs have successfully launched, Solana and XRP ETFs may be next.
Bitwise highlighted 5 key observations about XRP in its blog post. The report pointed out that XRP’s performance record has withstood the test of time and remains one of the top 5 crypto assets in the world by market capitalization. Furthermore, it is one of the few crypto-assets to have outperformed Bitcoin in two consecutive bull cycles, something only Dogecoin and Ethereum have achieved so far.
Significant investor interest
Second, Bitwise notes that it has identified significant retail interest in XRP based on relative search interest on Google. It supported its view by citing a recent survey of retail investors by Ernst & Young, which showed that XRP ranked among the top 4 crypto assets by retail investor allocation.
It noted that U.S. spot crypto ETFs are generally still dominated by retail investors, which may mean that investors are showing strong interest in the U.S.-registered spot XRP ETF.
XRP benefits the most!
Bitwise highlights that XRP may be the coin that benefits the most from recent changes in the US government and reduced regulatory uncertainty, especially since Gary Gensler has announced his resignation as SEC Chairman on January 20, 2025. Notably, XRP has gained 188% since the US election on November 5, 2024.
Real use cases for XRP
In addition, Bitwise also pointed to a wide range of practical use cases for XRP, mainly surrounding cross-border remittance payments and general payments. It noted that Ripple’s partnerships, such as SBI Remit and MoneyMatch, drive innovation through instant cross-border money transfers to global suppliers.
It highlights XRP’s ability to meet the growing demand for instant payments, with an average payment completion time of just 4 seconds and a theoretical maximum scalability of 1,500 transactions per second. It highlighted that a small portion of the global cross-border payments market could have a significant impact on XRP’s transaction volume and network activity.
“XRP is not overvalued”
Finally, it highlights that despite XRP’s outperformance following the US election results, XRP remains reasonably valued and has significant upside potential
Despite its outperformance following the U.S. election results, XRP is still not overvalued according to the Market Value to Real Value (MVRV) valuation metric.
XRP: The next big thing!
Taking all these aspects into consideration, Bitwise claims that XRP will be among the next wave of spot ETF approvals in the United States, with huge upside potential.
Additionally, in a recent development, Ripple’s strategic investment in Bitwise’s XRP exchange-traded product (ETP) has sparked curiosity across the crypto industry. Ripple’s financial support for the Bitwise GXRP ETP represents a calculated step towards the institutionalization of XRP.
