Institutional XRP Investments Grow Amid High Custody Costs and ETF Interest
Vincent Van Code, a software engineer, highlights challenges and developments around XRP adoption by large institutions:
Key Challenges for Institutional Adoption
- The main obstacles for big firms holding XRP are operational and compliance-related.
- Institutions require formal custody, audits, and compliance systems, which can cost about $300,000 annually.
Alternative Investment Routes
- Exchange-traded funds (ETFs) and equity in public companies with XRP holdings are potential ways for institutions to gain exposure.
- Seven applications for XRP ETFs are pending with the US SEC, though progress is stalled due to a government shutdown.
- Evernorth, supported by Ripple, plans to establish an institutional XRP treasury, initially purchasing over 560 million XRP with $1.1 billion in capital commitments.
Market Activity and Speculation
- An anonymous trader on the Hyperliquid exchange placed a $1,000,000 long position on XRP at $2.409 with 10x leverage, indicating bullish sentiment.
This activity reflects ongoing interest and speculation in XRP's near-term price movements.