Spot XRP ETFs have recorded billions in net inflows, a bullish signal for institutions. But XRP treasury is better for an investment approach, claims an ex-Ripple and current Evernorth Holdings executive.
XRP price is defying the broader crypto market’s negative trend amid the US-Iran ceasefire and steady institutional interest. Prices fell over the past 24 hours, but remain above the key support levels.
Ex-Ripple Says XRP DATs Are Superior to Spot XRP ETFs
XRP digital asset treasury (DAT) and ETFs are two investment options for institutional and retail investors to gain regulated exposure to XRP. Spot XRP ETFs have recorded massive investments from tradFi, with Goldman Sachs leading in institutional holdings.
Sagar Shah, Evernorth’s BDO and ex-Ripple, said “There’s been over a billion dollars in net inflows into XRP ETFs. It tells you that institutions want exposure, but ETFs are a passive wrapper.”
Spot XRP ETFs buy XRP and hold it for investors. Currently, ETFs have recorded $1.21 billion in net inflows. The asset under management is almost $950 million, which is just 1.15% of the total market cap.
In contrast, a DAT is designed to actively participate in the ecosystem, Sagar Shah added. XRP treasury can deploy assets on-chain, generate yields, and encourage more adoption.
A digital asset treasury can do all this with public company transparency. designed to do more. “You don’t get that from an ETF. There has been a valuable on-ramp to the XRP ecosystem for institutions and for building greater awareness,” said Shah.
As CoinGape reported earlier, Ripple CEO Brad Garlinghouse confirmed growing institutional interest in XRP. He said some of the biggest companies around the world are asking about stablecoins and digital assets.
Evernorth Inches Closer to Becoming Largest Public XRP Treasury
Ripple-backed Evernorth advances towards a merger to become the largest public XRP treasury. The company has raised over $1 billion in gross proceeds ahead of the proposed merger with Armada Acquisition Corp II and list under “XRPN” ticker on Nasdaq.
Evernorth also nominated Ripple CLO Stuart Alderoty and J Capital’s Ted Janus to its board of directors. It aims to drive broader institutional participation in the ecosystem, unlike XRP ETFs.
XRP price dropped more than 3% to $1.33 in the past few hours. The 24-hour low and high are $1.33 and $1.39, respectively. Furthermore, trading volume has decreased by 13% over the last 24 hours.
It comes as traders book profit after the recent upside momentum in XRP price amid the ceasefire between the US and Iran. However, traders panic after Iran accused the US of ceasefire violations as Israel strikes Lebanon.
CoinGlass data indicated massive selling in the derivatives market. XRP futures open interest tumbled 7% to $2.36 billion over 24 hours. The 4-hour XRP futures OI on CME climbed 1.31% and dropped 1% on Binance.
