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Why Is XRP Outshining ETFs? Discover What Top Developers Say!
In recent xrp news, software engineer Vincent Van Code has shed light on the emerging reasons for optimism surrounding XRP among developers and investors. He emphasizes that the primary obstacle preventing large firms from directly holding XRP is not the cryptocurrency’s price or market interest but rather operational and compliance hurdles.
Van Code explained to his followers that major corporations cannot simply “set up a Ledger or Xumm wallet and drop $100 million in there.” Instead, institutions require formal custody arrangements, regular audits, and robust compliance systems before they will engage with cryptocurrency at scale. Reports estimate that the annual cost of maintaining such services for a single institutional setup is approximately $300,000. This figure elucidates why many firms are hesitant to keep tokens on their own balance sheets.
The recent announcement from Evernorth, a venture partly backed by Ripple, further complicates the landscape for institutional investors. Given the stagnant XRP price, Van Code notes that buying and holding XRP may be more challenging than anticipated. Large companies are not inclined to create their own wallets for significant amounts without ensuring adequate custody and compliance measures are in place.
As the crypto landscape evolves, exchange-traded funds (ETFs) and publicly traded companies holding XRP are emerging as the most viable pathways for institutional exposure. Currently, there are seven applications for XRP ETFs pending with the US Securities and Exchange Commission. Unfortunately, these filings have been stalled due to the ongoing US government shutdown. For many large investors, purchasing shares in a regulated fund or a company with an XRP treasury eliminates the need for in-house custody systems.
Evernorth has become a focal point in this discussion, planning to establish what it calls an institutional XRP treasury. The company aims to acquire $1 billion worth of XRP, starting with an initial purchase of over 560 million XRP after securing $1.1 billion in committed capital from participants, including Ripple and SBI Holdings. Reports suggest that Evernorth is pursuing a merger expected to close in Q1 2026, with XRP purchases slated to occur within ten days of funding.
Market activity indicates that traders are making significant bets on XRP’s near-term trajectory. Recently, an anonymous trader opened a sizable long position of $1,000,000 on the Hyperliquid derivatives exchange, entering at a price of $2.409, which corresponds to 416,736 tokens. This position, leveraged at 10x, has drawn attention from the community, highlighting the short-term bullish sentiment surrounding XRP. However, such positions can also lead to increased price volatility.
In conclusion, as institutional interest in cryptocurrency grows, the challenges surrounding custody and compliance remain significant hurdles. Yet, innovative solutions like ETFs and institutional treasuries may pave the way for wider adoption. For ongoing insights into the evolving crypto landscape, visit our crypto section.
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The future of XRP remains uncertain, but with the right developments and institutional strategies, it could very well outshine other investment vehicles like ETFs.
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