XRP (XRP 1.21%) is one of the oldest and most successful cryptocurrencies. Launched by blockchain payments company Ripple in 2012, XRP is now worth $139 billion, making it the fourth-largest coin by market cap (as of Nov. 14).
Over the last six months, XRP is down 10%, underperforming Bitcoin and Ethereum. But XRP investors did get some good news recently that could help it bounce back.
Image source: Getty Images.
The first spot XRP ETF is here
After months of waiting, a spot XRP ETF has received regulatory approval. The fund from asset manager Canary Capital opened on Nov. 13 with $58 million in trading volume, more than any other ETF launched this year so far.
Spot ETFs provide direct exposure to the underlying cryptocurrency. This means institutional investors, such as hedge funds, can now invest in XRP. Retail investors can also get XRP exposure in retirement accounts, such as IRAs and Roth IRAs. ETF approval essentially provides more avenues for investment to flow into cryptocurrencies.
CRYPTO: XRP
Key Data Points
Bitcoin and Ethereum are useful examples of why this matters, as they were the first two cryptocurrencies to receive spot ETF approval. Bitcoin ETFs have had inflows of $59 billion, and Ethereum ETFs have taken in $13 billion.
ETF approval won't necessarily send XRP soaring, especially with the crypto market going through a downturn. However, it should help XRP's long-term growth prospects by attracting institutional investors.
