XRP Institutional Interest Experiences Growth this Year, Reports

The growth of the Ripple-backed cryptocurrency, XRP has undoubtedly been significant over the years thanks to some factors including its underlying technology and the hype around the Ripple vs SEC court case which took a major turn earlier this month. As the popularity rises, so does the interest from institutional investors.

A recent survey conducted by EY-Parthenon shows proof of this increase. The survey, which explains how institutional investors plan to engage in digital assets in 2024, revealed that these large investors have increased their allocations to digital assets and its related products and plan to continue doing so in the coming years.

Institutional Investors Increase XRP Holdings

A prominent figure in the XRP community, WrathofKahneman on X, highlighted the increasing demand for XRP among these categories of investors. The EY-Parthenon team surveyed in early March following the approval of several Bitcoin Exchange-Traded Products (ETPs) by the Securities and Exchange Commission (SEC) and a notable increase in the total crypto market valuation.

The survey involved 277 institutional investors which comprised top executives and decision-makers in firms like CEOs, COOs, portfolio managers, and heads of transformation. The respondents were selected from diverse financial institutions like wealth managers, family offices, traditional asset managers, hedge funds, and asset owners. Also, they represented different regions including the United States, Europe, Asia-Pacific, Canada, and Latin America.

The survey result underscored diverse interests in investor choices. From the result, there were 9 notable cryptocurrencies in which these investors have diversified their portfolios including Bitcoin, Ethereum, Solana, XRP, Binance Coin, Cardano, Tron, Avalanche, and Lido. While the two largest cryptocurrencies, BTC, and ETH dominated interests, SOL and XRP received a sizeable portion.

According to the statistics above, Bitcoin and Ethereum holdings are 98% and 78% respectively. Compared to the previous year, BTC experienced a 4% increase while ETH saw a 10% decline in institutional interest. Notably, Solana (SOL) and XRP followed with 24% and 20% interest respectively. Moreover, about 57% of the respondents who invested in cryptocurrencies have allocated to coins besides BTC and ETH, with 68% of family offices more likely to invest in coins like XRP and Solana. This indicates the growing acceptance and appeal of XRP to institutional investors.

Institutional Stablecoin Interest

Meanwhile, the survey also highlighted the shifting interest in investors’ stablecoin preferences. The CENTRE-issued stablecoin, USDC has dominated interest over the year as investors gradually move from Tether’s USDT, the largest stablecoin by volume. According to the report, USDC dominated by 68%, up from last year’s 62%, USDT took 35% and PayPal USD saw 25% interest, emerging as a new entrant occupying the third position over the last year.

The shift from USDT to USDC can be attributed to several factors including scrutiny from regulatory bodies, and the transparency and backing of the USDC coin. Notably, CENTRE is a joint venture between the Coinbase exchange and Circle.

As Ripple’s venture into the stablecoin market takes off, it will be interesting to observe the position the asset will occupy in the minds of institutional investors, how it will rank in subsequent surveys, and what level of attention it will command in the crypto space.