Ripple Invests in Rebranded XRP Exchange-Traded Product by Bitwise

Ripple, a blockchain payments firm, announced its plans to invest in the newly rebranded Bitwise Physical XRP ETP. This investment comes at a time when there is a growing demand for crypto-backed financial products, especially as regulatory clarity around cryptocurrencies improves in 2024.

The CEO of Ripple, Brad Garlinghouse, highlighted the significance of this investment, noting that there has been a surge in global demand for exposure to the crypto asset class. XRP, the digital asset associated with Ripple, is seen as a cornerstone for investors looking to access assets that are both resilient and have real-world utility.

The Bitwise Physical XRP ETP is designed to offer European investors direct exposure to XRP and is issued under a prospectus approved by Germany’s financial regulator BaFin. Originally launched by ETC Group in 2022, the ETP is now part of Bitwise’s expanding portfolio following its acquisition of ETC Group earlier this year.

Bitwise’s CEO, Hunter Horsley, praised the utility and reliability of XRP and the XRP Ledger, highlighting them as some of the most familiar and trusted blockchains in the crypto space. Last week, long-term holders of XRP realized profits exceeding $1.5 billion as the cryptocurrency reached its highest price in three years.

Despite this, the Market Value to Realized Value (MVRV) ratio for XRP climbed to 217%, indicating that the cryptocurrency’s current market valuation is significantly higher than its average purchase price. While this suggests substantial profits for holders, it also raises concerns about potential overvaluation in the short term, which could impact any further rapid price increases.

Overall, Ripple’s investment in the Bitwise Physical XRP ETP is a significant move in response to the growing demand for crypto-backed investments, and it underscores the increasing interest in digital assets as part of diversified investment portfolios.