- XRP ETFs hold about $1.06 billion in combined assets under management (AUM).
- Bitwise, Grayscale, Franklin Templeton, 21Shares, and Canary Capital are offering XRP ETFs.
- T. Rowe Price is a global investment management firm with over $1 trillion in assets.
The SEC is set to decide by February 26 whether to approve an XRP ETF filed by investment giant T. Rowe Price, which would represent a rather important moment for bringing XRP into the world of regulated, mainstream investing.
The decision comes as XRP ETFs are already booming, holding about $1.06 billion in combined assets under management (AUM). Right now, five companies are offering XRP ETFs: Bitwise, Grayscale, Franklin Templeton, 21Shares, and Canary Capital.
These funds let investors bet on XRP through a regular stock exchange, without having to buy or store the crypto themselves.
If T. Rowe Price (a financial giant with over $1 trillion in assets) jumps into the XRP ETF space, it would be a huge vote of confidence from Wall Street. History shows that when big traditional firms get involved in crypto ETFs, it tends to be a catalyst for ETF inflows.
After the SEC greenlit Bitcoin ETFs in early 2024 and Ethereum ETFs later that year, asset managers started racing to launch funds for other cryptos. XRP became a top candidate partly because its legal standing became clearer after the SEC’s case against Ripple reached a partial resolution.
Should regulators give the green light, a T. Rowe Price XRP ETF could draw more institutional investors into XRP, give the token more credibility on Wall Street, heat competition among ETF issuers, and possibly affect how XRP trades and how easy it is to buy or sell.
Related: SBI Chairman Says 9% Ripple Stake Could Outweigh $10B XRP
Rising Institutional Interest in XRP
Recent developments do show that institutional interest in XRP is picking up steam. For instance, earlier this month, Japan’s financial heavyweight SBI Holdings confirmed it owns about 9% of Ripple Labs, which is a strong sign of long-term commitment.
Meanwhile, Ripple is pushing ahead internationally, teaming up with banks in the UAE to build stablecoin systems tied to XRP.
If the SEC approves T. Rowe Price’s XRP ETF, it could also help with the cryptocurrency’s price. Lately, XRP has been struggling to hold important resistance levels and is experiencing a roughly 26% price decrease in the last 30 days.
It’s currently hovering around $1.46, and the potential ETF approval may provide a much-needed boost.
Related: Ripple Urges SEC to Abandon Decentralization as a Legal Test
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
