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The exchange-traded fund playbook that powered Bitcoin and, later, Ethereum into institutional portfolios may not apply neatly to XRP. According to asset managers behind the new XRP ETF launches, the product is carving out what one executive called a “third path” — one that may be less dependent on crypto’s traditional boom-and-bust cycle and more anchored in adoption and infrastructure.
As of mid-month, XRP-linked ETFs have gathered roughly $1.12 billion in net assets, a figure that stands out not because it rivals Bitcoin’s record-breaking debut, but because it has arrived amid a weakening crypto market. That contrast is shaping a new narrative around XRP’s role in institutional portfolios.
“I think it’s sort of this third path which is really interesting,” said Matt Hougan, referring to the divergence between XRP’s rollout and earlier ETF launches.
Not Bitcoin. Not Ethereum.
Bitcoin’s ETF debut was a singular event, executives say — the culmination of nearly a decade of regulatory battles, pent-up institutional demand, and perfect timing during a bull cycle. Ethereum’s experience was almost the opposite: a quieter launch that struggled for attention before finding momentum much later.
XRP’s reception has landed somewhere else entirely.
“XRP has been much better received than Ethereum was,” Hougan said, saying that Ethereum ETFs initially “quietly moved out of the gate.” By contrast, XRP funds crossed the billion-dollar mark quickly despite unfavorable market conditions.
“To see a billion dollars in a down market is really exceptional,” Hougan said. “If this were a strong crypto market that number would be significantly higher.”
A Willingness to Compete — and a Bet on Strength
Steven McClurg, whose firm has launched multiple digital-asset ETFs, said XRP stood out well before trading began.
“I knew it was going to be strong out of the gate based on the conversations we had,” McClurg said, contrasting it with Ethereum, where he previously opted not to launch a spot product because of crowded competition and weaker early demand.
Bitcoin, McClurg acknowledged, benefited from every possible tailwind: market leadership, a long track record, and a bull cycle already in motion. XRP, by comparison, is emerging as what he called a “divergent asset”, one that may decouple from Bitcoin’s familiar four-year rhythm.
