XRP Gains Ground Among Institutional Investors—Survey

• A new report finds that 20% of institutional investors hold XRP this year, an increase from last year, as regulatory clarity and utility gained traction.
• 54% of the investors said they intend to increase their crypto investment within the next three years, with Bitcoin and Ethereum dominating the sector.

Institutional investors have increased their investment in crypto over the past year, and XRP is emerging as one of their favourite coins, a new study has found.

The study was conducted by the Big Four accounting firm Ernst & Young. It involved over 270 of the largest institutional investors in crypto and assessed their sentiment, application, and plans for blockchain. This group is highly enthusiastic about crypto, with 94% saying they believe in the sector’s long-term value. 55% of the respondents also said they intend to increase their allocation to crypto and other blockchain-based applications.

XRP continues to be a favourite with this group of investors. The study found that one in five had invested in the token, an increase from last year.

EY report on corporate crypto investment in’24 (May). About 80% of respondents were US & EMEA. Among current holders, #XRP holdings ticked up to just above 20%.https://t.co/CgQpQL6f34 pic.twitter.com/APIUByJcQ9

— WrathofKahneman (@WKahneman) August 25, 2024

The deep-pocketed investors’ increase in interest in XRP is no surprise. This year, XRP shook off the biggest cloud that has hung over its head: the SEC’s lawsuit. As we reported, Ripple managed to scale down the SEC’s demands from $2 billion in fines to just $125 million.

While the lawsuit greatly suppressed the XRP price, it had one positive outcome—XRP got the regulatory clarity it has long called for. The Manhattan court presiding over the legal battle established that XRP sales on secondary markets are not security violations. This means that institutional investors can now trade the tokens without any fear that the government can crack down on them at any time.

This also makes XRP the second crypto after Bitcoin, whose regulatory status is well established. Ethereum has gotten closer with the approval of its ETFs by the SEC. However, it’s worth recalling that Gensler has shied away from giving a definitive answer on whether the agency considers Ether a security.

Worryingly for ETH holders, the agency had initiated actions against ConsenSys, the leading Ethereum incubator, in what was seen as a proxy securities battle against Ethereum. Gensler dropped the action later, however.

Back to the E&Y study, Bitcoin tops the charts, with an overwhelming 98% of professional investors holding the top coin. The approval of the Bitcoin ETFs earlier this year aided BTC’s course as the study found that 62% of these investors prefer registered vehicles like ETFs over spot trading.

At 78%, Ether was second on their books, with Solana at a distant third with 24%. Curiously, ETH holdings dipped from 88% the previous year.

On the stablecoins front, Tether finally lost its lead, with USDC dominating the market at 68%. PayPal USD, which launched mid-last year, burst onto the top 3 with 25% dominance.

XRP trades at $0.5781, dipping 3.44% in the past day for a $32.32 billion market cap.

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