Institutional Shift for XRP

I think what’s happening with XRP right now is pretty interesting, honestly. For years, institutions stayed away because of the SEC lawsuit. They didn’t want to touch it. Now Franklin Templeton, with their $1.6 trillion in assets, is not just launching an XRP ETF but actually calling the asset “foundational” to global settlement infrastructure.

That’s a significant change in tone. It’s not just about creating a financial product anymore. They’re making a statement about XRP’s role in the broader financial system.

The Numbers Tell a Story

Franklin’s XRPZ ETF has pulled in $132.3 million in net inflows since launching in late November. All four XRP ETFs together have gathered about $887 million. Those aren’t small numbers, especially considering where XRP was just a couple years ago.

Back in late 2020 and early 2021, exchanges were delisting XRP left and right. The regulatory uncertainty made everyone nervous. Institutions avoided building anything around it. The legal battle with the SEC created this cloud that hung over the asset for years.

Now we’re seeing a complete turnaround. Tyler Hill from Fluence pointed out that what’s interesting here isn’t necessarily the price impact, though that might come. It’s the institutional validation that’s happening.

Beyond Just ETFs

What’s perhaps more telling is that other financial bodies are taking notice too. The Institute of International Finance, the IMF, and the US Faster Payments Council have all mentioned XRP’s potential for cross-border payments. They’re looking at the actual utility, not just the investment angle.

Some companies are even setting up corporate XRP treasuries. Webus International filed for a $300 million XRP treasury back in June. Reliance Group, Trident Digital, VivoPower, and Evernorth have shown interest too. That’s corporate adoption, not just retail speculation.

A Different Kind of Interest

Hill suggests that large institutions might be quietly rebuilding exposure to digital assets that sit at the infrastructure layer. Projects like XRP that support payment rails and settlement systems. It’s a different approach than just chasing the next big token.

Franklin Templeton’s David Mann emphasized that their XRPZ ETF gives investors a regulated way to invest in something that plays this foundational role. They’re framing it as infrastructure investment, not just crypto speculation.

Bitwise, Grayscale, and Canary Capital have also launched XRP ETFs, so it’s not just one firm going out on a limb. There’s a pattern developing here.

Four years of legal battles with the SEC created this cautious environment. Now that some clarity has emerged, institutions seem more willing to engage. They’re not just dipping toes anymore—they’re building products and making public statements about XRP’s importance.

It feels like we’re watching a shift in how traditional finance views certain crypto assets. Not as speculative toys, but as pieces of financial infrastructure that might actually serve a purpose beyond trading.