XRP by Bitwise: Faster Market Adoption Than Ethereum

The market is showing a clear pattern that differs in how institutions are approaching. While overall sentiment is declining, XRP ETF products are receiving unexpectedly strong support from institutional capital. This phenomenon offers a new lens to understand the dynamics of crypto adoption at the institutional level.

XRP Acceptance Compared to ETH: Direct Comparison

Bitwise CIO Matt Hougan directly stated that institutional acceptance of the XRP ETF is happening faster than it did with Ethereum ETF products. Ethereum ETFs were “quietly launched” before gradually gaining market momentum.

In contrast, XRP demonstrates a different trajectory. The Canary Capital XRP ETF reached $58 million in trading volume on its first day alone. More importantly, the total Assets Under Management have surpassed $1 billion within just a few weeks, and institutional capital continues to flow even as the industry faces a down market.

Hougan shared his observation: “Seeing a billion dollars in a down market is really uncommon.” Net inflows have remained positive for over 30 days, an indicator of sustained institutional interest in this asset.

Significance: Simple Narrative, Strong Appeal

According to analysis, XRP has emerged as a “simple story” that is easy for institutional investors to understand. It is not as complicated as other crypto narratives. Professional investors are “familiar and ready for this,” thanks to long-term exposure and familiarity with the asset.

This pattern reflects a deeper shift: institutions are acting while retail investors remain cautious. During market weakness, professional capital did not stop—it instead viewed this as a strategic entry point.

Retail vs. Institutional Divide

The market shows a clear divergence. While retail traders hesitate and worry about prices, institutional money is actively entering. Market dips have not shown decreased interest—in fact, they have served as catalysts for more aggressive accumulation.

Whale activity in the XRP ecosystem supports this observation. Sophisticated market participants made significant moves in the past week, indicating strategic positioning at lower price levels.

Price Is a Red Herring, Not the Real Story

The low price of XRP (currently $2.06) may hinder retail participation, but it is not an obstacle to institutional flows. Current market conditions have created an asymmetric opportunity—where informed players are entering while the broader market focuses on short-term price action.

Compared to Ethereum (currently $3.15K), XRP demonstrates a better adoption curve for the new ETF vehicle. Institutional preference for clarity and simplicity has tilted the advantage toward XRP at this moment.

The long-term implication is clear: sustained inflows in a down market indicate “long and persistent demand.” The retail sector may miss this opportunity while waiting for the market to turn—yet institutional players see the price as just a trap, not a good entry point for the fundamental thesis.