Institutional investors are increasingly interested in crypto, especially XRP. A recent report from ETF issuer WisdomTree suggests XRP is a great short-term strategy for their portfolios. This idea’s been spreading like wildfire on X (formerly Twitter).
XRP: Onshore Access and Basis Trading
WisdomTree highlights XRP’s unique advantage: easy access through CME-listed futures. This means investors don’t need to use riskier, less regulated offshore markets. This onshore access lets institutional investors easily profit from differences in XRP prices across different markets (basis trading), which is especially helpful in volatile markets. Basically, big money managers can now easily trade XRP without leaving regulated exchanges.
The Missing Piece: Spot XRP ETFs
Many XRP supporters believe its potential is even bigger. The key is the approval of Spot XRP ETFs in the US. This could trigger a huge influx of money into XRP, similar to what happened with Bitcoin early this year after Spot Bitcoin ETF approvals. The SEC has a deadline in mid-October to decide on several applications, including Grayscale’s request to convert its XRP Trust into a spot ETF. One ETF analyst predicts a 95% chance of an XRP ETF launching soon.
XRP vs. Bitcoin, Ether, and Solana
WisdomTree also compares XRP to other cryptocurrencies popular with institutions:
- Bitcoin: The gold standard, offering the most liquidity and reliable basis trading. It consistently trades at a premium to its spot price, making it ideal for yield harvesting.
- Ether: Seen as a smart alternative to Bitcoin.
- Solana: A high-growth option, offering potentially higher returns due to staking rewards.
Despite the strengths of Bitcoin, Ether, and Solana, WisdomTree still sees XRP as the best short-term strategy due to its onshore accessibility and basis trading opportunities.