Survey Reveals Rising Institutional Interest in Favor of XRP Over Other Altcoins
Key Takeaways
- A survey targeting institutional investors revealed that 86% were exposed to crypto, and 73% held at least one cryptocurrency.
- While Bitcoin and Ethereum were most preferred, XRP at 34% edged out Solana and every other altcoin, with most investors desiring exposure through ETFs.
- 80% of surveyed expect higher asset prices in 2025, with 70% believing the crypto sector had the most significant potential for risk-adjusted returns.
There’s rising institutional interest in cryptocurrencies, especially XRP; asset managers prefer to enter the crypto space via exchange-traded funds (ETFs) that track digital assets instead of owning the crypto directly.
According to a recent survey conducted by Coinbase and EY-Parthenon and published on Tuesday, there was evidence of growing acceptance of cryptocurrencies within institutional portfolios despite the lack of a robust regulatory landscape. The study, which took place in January and targeted 352 respondents worldwide, revealed that while Bitcoin and Ethereum were the most favored digital assets, over 34% of the respondents owned XRP compared to 30% for Solana and 25% for Dogecoin.
Most Investors Drawn to ETFs
The report states that the survey mainly focused on asset managers, hedge funds, private banks and VC funds, family offices, and asset owners (for example, Pension, Endowment, and Foundations, to name a few. Most participants hailed from the United States and Europe, accounting for at least 90% of the respondents. The survey read:
“Survey was focused on the US (62% of respondents) and Europe (28% in the UK/ EU), with some representation from the rest of the world (“ROW,” 10% in APAC, LatAm, Africa).”
The survey revealed further that the majority of investors were drawn towards investment vehicles like ETFs, which they believed offered a more straightforward way of gaining access to crypto investment. Their preference, they said, was driven by the complexity and limitations associated with handling cryptocurrencies directly. Most respondents found that ETFs were a more straightforward and attractive option for institutional investment and looked forward to integrating them into their portfolios.
XRP benefited more from Trump’s Crypto Stance
Available market data shows that Solana entirely relinquished its post-election gains while XRP gained gradually, as it did during Election Day in 2024. According to analysts, XRP has benefited more from Trump’s crypto-friendly stance than most other digital assets. The only impediment is the awaited conclusion of the long-drawn Ripple vs. SEC case over XRP sales.
It should be noted that the agency mostly adopted a collaborative approach to crypto operators in 2025; however, 53% of respondents stated that the uncertain regulatory environment was a serious cause of concern. Regarding which digital assets are commodities or securities, 49% of the participants stated this was an area they needed more clarity on.
Conclusion
The increasing interest and focus on altcoin-based ETFs, especially those based on assets like XRP, highlight the significance of the current moment to the crypto ecosystem. The current mixed regulatory landscape, though challenging to most players, also creates an opportunity for market participants to participate in activities that could permanently shape the future of crypto investment. As investors watch the developments that asset managers and market regulators are taking, the conversation around XRP continues to evolve, with the anticipated regulatory framework and the outcome of the Ripple vs. SEC case expected to shape the future of the XRP token.
Frequently Asked Questions (FAQs)
Why is everyone talking about XRP?
The SEC accused Ripple of selling XRP as an unregistered security. They argued that Ripple treated XRP like company shares without going through the proper regulatory channels. The Court has set April 16 as the day for final judgment.
Why is XRP on the rise?
XRP’s recent surge is linked to Ripple’s news about securing a regulatory license from the Dubai Financial Services Authority (DFSA) and the anticipated positive outcome of the Ripple vs. SEC case.
What makes XRP a unique digital asset?
XRP has created a niche as a low-fee alternative for cross-border transactions. By eliminating the need for third-party intermediaries such as banks, XRP has resulted in fees far less than $0.01.