The presence of XRP, Ripple Labs’ cryptocurrency, in institutional environments is growing steadily, to the point of beginning to attract the attention of Wall Street, where the heart of the United States financial and stock market system is located.
Proof of this is that Ripple Labs announced that it will receive a strategic investment of 500 million dollars, financed by the companies Citadel Securities, Fortress, Pantera and Galaxy Digital, which brings its valuation to $40 billion.
It should be noted that the $40 billion valuation means that, after this investment, the market considers Ripple as a company to be worth that amount in total. This does not imply that XRP was purchased for that value, but rather that the $500 million goes to the company itself, reflecting investors’ confidence in its growth and the potential of its ecosystem.
This means that although they are not directly purchasing XRP, These firms are investing in the infrastructure that supports it.
“This investment reflects Ripple’s incredible momentum as further validation and market opportunity we are aggressively pursuing from some of the world’s most trusted financial institutions,” express Brad Garlinghouse, CEO of Ripple.
For his part, Edu Heras, content creator and digital asset market analyst, raised: «If entities like Citadel participate in a round of 500 million, it is because they have seen something big in this. Surely their analysts have seen things that we will not see in years and that is why they make such an investment.
The move makes it clear that institutions are seeking exposure to the Ripple ecosystem beyond the cryptocurrency itself.
Companies accumulate XRP
Last week, another step in that same direction was announced: Evernorth Holdings Inc., an American company created to promote the institutional adoption of XRP, continues with its long-term accumulation strategy of this asset.
On November 4, the firm acquired 84,365,876 XRP at an average price of $2.53 per unit. With this latest purchase, the firm already exceeds 473 million units of XRP under its belta position that has been expanding since the announcement of its merger with Armada II at the beginning of the month.
Other companies, such as VivoPower, Worksport or Digital Commodities Capital, have also incorporated the cryptocurrency into their treasuries and intend to expand their positions using a strategy similar to that implemented by Strategy, the firm led by Michael Saylor.
It consists of issuing corporate debt or other financial instruments to obtain quick money, without the need to depend on operating income. The difference is that Strategy only accumulates bitcoin (BTC) as a reserve asset.
But it is clear that “institutional love” for XRP is beginning to grow strongly and more companies are seeking to be part of this story.
The Launch of XRP Spot ETFs
The other sign that XRP, Ripple Labs’ cryptocurrency, is “conquering” Wall Street is the expectation that there is the launch of XRP spot exchange-traded funds (ETFs) in the United States.
This is because the approval of these financial instruments would provide greater visibility to XRP among traditional investors and could increase liquidity within the Ripple Labs ecosystem.
In addition, these products facilitate the entry of corporate and business capital, since their operation is similar to that of the purchase of conventional shares.
The launch of the ETFs can directly influence the price of XRP, as The fund managers responsible for the funds need to acquire the underlying asset to back their holdings.
That is, a increase in demand for these products would force issuing companies to buy XRP in the market, which, following the law of supply and demand, could boost its value.
Nate Geraci, president of NovaDius Wealth Management, noted that the Canary Capital spot ETF could hit the market in less than two weeks.
Although the focus is on the United States, other countries are also moving forward with regulated XRP products: in Brazil, the Hashdex Nasdaq XRP Index Fund (XRPH11) was launched, available on the Brazilian Stock Exchange (B3) and which tracks the Nasdaq
In Canada, an ETF managed by Purpose Investments began trading on the Toronto Stock Exchange, which offers direct exposure to the XRP spot price through a regulated instrument.
In short, XRP is making its way into the financial heart of the world, gaining institutional support and consolidating itself as one of the digital assets with the greatest projection in the market.
The corporate adoption and imminent launch of spot ETFs marks a turning point for Ripple Labs and its ecosystem, which is already beginning to walk the halls of Wall Street.