Brad Garlinghouse, the CEO of Ripple, announced a huge amount of transaction in a recent interview. Last year, the company handled more than 3 trillion of its Prime Broker service. There was also the Ripple who orchestrated payments of corporate treasuries of 12.5 trillion dollars. These incredible statistics reveal how much Ripple is gaining control of the blockchain financial infrastructure.
XRP ETFs record on top with inflows of $74 million a day.
Recently, institutional investors invested historic sums in XRP exchange-traded funds. Bitwise was the first to jump on getting 24.35 million dollars within one day. Subsequently Grayscale was close with new investments amounting to $23 million. The rest amounts were contributed by Franklin Templeton, 21 Shares, Canary Capital, Wisdom Tree, and Osprey.
This huge ETF trading was done on a downward price. Intelligent money was purchasing in large volumes as the retail investors were panicking. The trend is similar to historical central bank gold accumulation. Institutional buyers are preoccupied with long term value, and not short term price changes.
SEC Lawsuit Has Cost XRP Its Possibility of Adoption.
Bitwise Matt Hogan stated the reason why institutions shunned XRP over the years. The existential regulatory threats were brought about by the lawsuit of the Securities and Exchange Commission. None of the leading firms would collaborate with Ripple when there is active litigation. Integration plans and development teams were scrapped at once.
The removal of the lawsuit however changed the future prospects of XRP. Ripple is now at the same level of competition as other blockchains. It can be adopted in real-life without the regulatory uncertainty hovering over it. The turn in the XRP direction has officially started.
Cyber Hornet Introduces Hybrid S&P 500 ETF and XRP ETF.
NASDAQ was a recipient of filing documents of several Cyber Hornet Trust ETFs. One of the innovative products is a mix of S&P 500 and XRP. The fund employs 75 to 25 combinations strategy. The traditional equity investors will receive an indirect exposure to crypto, along with the blue-chip stocks.
The management charges are approximately 0.95 percent on similar products. This forms another controlled channel of flow of institutional capital. But the 25 percent crypto allocation implies the reduced direct XRP demand. The product is one of the building blocks in thousands of products that are coming up.
The use of Digital Wallets will eliminate the use of Traditional Account-Based Finance.
The financial services are moving on to a single digital wallets as opposed to fragmented accounts. At present, people work with money in a variety of fragmented platforms and applications. The wallets of tomorrow will be able to hold all the assets within a centralized programmable location. Single software interfaces make everything visible, controllable and manageable.
The change has an effect on retirement savings, investment management and everyday spending patterns. Blockchain technology can help retirements funds that were not utilized before to produce yields. The assets that yield close to zero interest rates might give a sudden yield of 3%-5%. The financial capabilities of families are varying based on monthly income on tokenized assets.
Retail Investor Crypto Legislation is Becoming a Threat because of political changes.
The chairman of SEC, Paul Atkins, encouraged congress to enact the Clarity Act. Senator Cory Booker however pointed out that there were major changes to the original bill. The white house supposedly had the interests of the banking sector over the protection of retail. Provisions of benefit to ordinary investors were said to have been eliminated or diluted.
Permanent legislation is very essential as the reversal of regulation can be achieved immediately. New regimes could potentially in total destroy existing crypto-friendly policies and infrastructure. The lasting protection is only by federal law that is approved by both houses and senate. The presidential signatures solidify the rules that outlive the individual political terms.
Crypto news writer since 2022, covering blockchain, digital assets, and market regulation.
Focused on clear, accurate reporting and simplified analysis for global readers.