ETF Issuer Says XRP Is A Tactical Play For Institutional Investors, Here’s Why

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Institutional confidence in the cryptocurrency market is gaining new momentum, particularly with XRP, which is increasingly becoming a focal point for investors. A recent release by ETF issuer WisdomTree, now circulating across the social media platform X and amplified by crypto commentator SMQKE, is projecting XRP as a “tactical onshore play” for institutional portfolios. 

The endorsement shows the growing sentiment that XRP is no longer just a speculative asset, with many fervent bullish proponents predicting a $1,000 price point in the near future.

XRP As A Tactical Onshore Play

According to ETF issuer WisdomTree, the unique advantage XRP now offers is its fully onshore accessibility through CME-listed futures. This eliminates the reliance on offshore venues that often expose investors to shallow liquidity and weaker regulatory oversight. In essence, the full onshore access of XRP makes it a viable gateway to consistent basis yield harvesting, especially valuable in fast-moving and volatile conditions in the crypto market. 

Basically, recent crypto market dynamics have made it possible that institutional traders can directly access basis trading opportunities in XRP without leaving regulated markets, a development that makes the asset particularly attractive for large-scale portfolio managers. 

However, many XRP proponents would argue that the cryptocurrency is yet to reach its full potential when it comes to being the tactical play for institutional investors. The most important thing right now is the launch of Spot XRP ETFs in the US market. A Spot XRP ETF would mirror the trajectory that Bitcoin followed in early 2024, when Spot ETF approvals by the SEC unleashed billions in inflows into the cryptocurrency.

Interestingly, the SEC has set a final deadline for deciding on several XRP-linked spot ETF applications by mid-October. For instance, the regulator must decide by October 18, 2025, whether to approve Grayscale’s request to convert its XRP Trust into a spot ETF. According to Eric Balchunas, a senior ETF analyst for Bloomberg, the odds of an XRP ETF hitting the US market soon are at 95%.

Bitcoin, Ether, And Solana As Institutional Benchmarks

The release by WisdomTree also looks at how different digital assets occupy particular roles among institutional investors. Bitcoin, through CME-listed futures, is the institutional “gold standard,” with the deepest liquidity and the most reliable structure for basis trading. According to the ETF issuer, Bitcoin CME futures are always trading at an annualized premium to spot, which makes them the cleanest in terms of scalability for yield harvesting. 

On the other hand, Ether is the smart beta to Bitcoin’s benchmark, while Solana was described by WisdomTree as the high-octane yield enhancer. Solana, like XRP, is still in its early stage compared to Bitcoin and Ether among institutional investors, but with the potential for higher returns due to staking rewards boosting its basis trades. However, despite these other crypto heavyweights, WisdomTree proclaimed XRP as the best tactical onshore play.

Featured image from Getty Images, chart from Tradingview.com

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