Ripple To Invest In Rebranded XRP Exchange-Traded Product By Bitwise
By Benzinga
Blockchain payments firm Ripple (CRYPTO: XRP) on Wednesday announced plans to invest in the newly rebranded Bitwise Physical XRP ETP.
The ETP, which is backed by XRP, is part of a broader rebranding effort by Bitwise Asset Management to enhance its European product suite.
What Happened: Brad Garlinghouse, CEO of Ripple, emphasized the significance of this investment amid rising demand for crypto-backed financial products.
“Global demand for exposure to the crypto asset class has exploded in 2024,” Garlinghouse said in a statement. “XRP is at the forefront of this momentum, standing out as a cornerstone for those seeking access to assets that are resilient and have real-world utility.”
The Bitwise Physical XRP ETP offers European investors direct exposure to XRP and is issued under a prospectus approved by Germany’s financial regulator BaFin.
Originally launched in 2022 by ETC Group, the ETP is now part of Bitwise’s growing portfolio following its acquisition of ETC Group earlier this year.
Also Read: Long-Term Bitcoin Holders Locking In $2.02 Billion In Daily Realized Profits, Setting A New Record
Hunter Horsley, CEO of Bitwise, praised XRP’s utility and reliability, stating, “XRP and the XRP Ledger are among the most familiar and trusted blockchains in crypto.”
XRP long-term holders realized profits exceeding $1.5 billion last week as the cryptocurrency soared to its highest price in three years, according to market data.
This marks the largest profit realization for XRP since April 2021.
The Market Value to Realized Value (MVRV) ratio, a key market indicator, climbed to 217% on Tuesday, per a report from FXStreet citing Santiment data.
The elevated MVRV ratio indicates that XRP’s current market valuation is significantly higher than its average purchase price.
While this suggests substantial profits for holders, it also signals a potential overvaluation in the short term, which could hinder a continued rapid rally.
The MVRV ratio measures the total market value of all circulating coins against the aggregate cost basis of those coins, determined by the prices at which they were last moved on the blockchain.
This metric provides insights into whether a cryptocurrency is overvalued or undervalued relative to its historical average acquisition cost.
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