Just under one month since its inception, the REX-Osprey Exchange-Traded Fund has grown its assets under management to over $100 million and is currently ranked as one of the fastest-growing ETFs. This is one of the achievements that shows increasing institutional interest in regulated XRP investment in the United States.
Although the US fund has grown at an alarming pace, its international equivalents have been falling behind. The Hashdex XRP ETF, launched in Brazil by Hashdex earlier this year, has approximately $52 million in assets under management. Analysts explain the difference by market scale and regulatory transparency in the U.S., where the enforcement of compliant spot XRP products has opened up a significant amount of pent-up institutional demand.
The REX-Osprey ETF is the only active spot-based investment vehicle on XRP that U.S. investors can invest in, following the Securities and Exchange Commission's postponement of its review of other filings.
In addition to ETFs, XRP is gaining popularity on various institutional platforms. Since May, CME has already traded over 500,000 XRP futures contracts, which represent approximately $27 billion of notional volume. The treasury management company Evernorth, before its listing on Nasdaq, announced that it would add XRP to its reserve portfolio.
The company will utilize the asset to provide liquidity and settle cross-border transactions, highlighting the growing adoption of XRP that is not tied to speculative trading. The relocation is an indicator of a favorable shift in the company's policies, with a focus on incorporating digital assets into its fiscal processes.
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The rise of XRP financial products is closely linked to the expansion of digital asset markets in general. The global cryptocurrency capitalization is $3.9 trillion, with Bitcoin currently trading near $115,000, and Ethereum is priced at over $4,150. XRP price rose by 11% in the past week and is currently trading at a value of 2.64.
The rise of XRP's popularity in the market is a step towards integrating cryptocurrency into conventional finance. XRP is becoming an institutional asset rather than a speculative one, enabled by the introduction of ETFs, derivatives, and corporate holdings. This is a sign that mainstream capital markets are becoming accessible to digital currencies.