XRP ETFs surpass $1 billion amid a bear market, sparking debates on institutional adoption beyond Bitcoin cycles. Is XRP carving a "third way" detached from Bitcoin and Ethereum? Asset managers explore this new terrain, reshaping the crypto landscape.
XRP ETFs attracted approximately $1.12 billion in net assets in their first month of trading. A performance all the more remarkable as it occurred during a consolidation market. Bitcoin is trading below its major resistance levels while Ethereum struggles to defend its psychological support levels, making this influx particularly significant.
Matt Hougan describes this fundraising as “exceptional”, emphasizing that capturing a billion dollars in a bear market remains rare. By comparison, Ethereum ETFs had a much more modest launch despite their status as the second-largest cryptocurrency by market capitalization. This proves that timing and narrative play a decisive role.
The comparison with Bitcoin ETFs reinforces this observation. The latter benefited from a launch during a full bull run, driven by institutional demand that had accumulated for years. XRP, on the other hand, is recording these performances under far less favorable conditions, which strengthens the significance of the signal being sent to the market.
Steven McClurg explains this success through the unique positioning of XRP. Unlike Ethereum, where ETF supply quickly saturated limited demand, XRP generated immediate interest, supported by a distinct narrative focused on cross-border payments and financial infrastructure.
The concept of a “divergent asset” suggests that XRP could partially break free from the four-year cycle dictated by Bitcoin halvings. This thesis relies on gradual institutional adoption and concrete utility, less dependent on the classic speculative sentiment of crypto markets.
In a macroeconomic context marked by investor caution, raising $1.12 billion sends a strong signal of institutional conviction. For Hougan, this dynamic could amplify during the next bull cycle, especially as regulatory clarity around XRP improves and asset managers favor a long-term vision rather than seeking immediate volumes.
The analyst remains cautious about timing: The altcoin-to-Bitcoin ratio is currently depressed, but a recovery could occur after an initial Ethereum move. Patience and thorough research remain essential for identifying solid projects before their discovery by the broader market.
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