As U.S. spot ETFs have doubled their $XRP holdings since the beginning of the year, bringing their investments to nearly $200 million, 21Shares has answered investors' main question: "Why should you buy $XRP right now?"
Analysts identified four specific reasons behind institutional demand, stating that the market has finally fully absorbed the consequences of years of litigation.
In brief: Lawsuits are in the past, real billions are already on-chain
The first and most compelling argument is $XRP's official legal status in the United States, secured by the final ruling in the SEC case. After Ripple brought the proceedings to a close in August last year, $XRP became one of the few altcoins with an entirely clear legal status.
For conservative U.S. funds, this effectively eliminated compliance risks: from a legal standpoint, entering the asset is now as safe as buying Bitcoin.
The second reason is the launch of spot ETFs, which provided the market with deep institutional liquidity. The new infrastructure has already demonstrated its ability to absorb large sell-offs without putting the price chart through shock therapy.
One example is the case from the beginning of the year, when Goldman Sachs fully locked in its profits and sold its $153.8 million position. The market absorbed the entire volume within just two weeks through retail investors and smaller funds, without any noticeable decline in price.
The third factor is the real, measurable on-chain turnover of the $XRP Ledger, which reached $500 billion over the past 12 months. The XRPL economy is now supported by tangible financial metrics rather than speculative promises.
The network currently hosts the native RLUSD stablecoin with a volume of $1.6 billion, as well as another $4 billion in tokenized U.S. Treasuries.
The fourth reason is $XRP's strict tokenomics model. The coin's supply is capped at 100 billion, with no technical possibility of issuing more.
At the same time, the network has already permanently burned 14 million $XRP through transaction fees, while Ripple's public escrow release schedule protects investors from the sudden dilution of their holdings.
However, 21Shares also pragmatically highlights the main technological risk: high network activity does not automatically mean that the token's price will rise. Large banks often use $XRP exclusively as a bridge asset. They buy it for a specific instant transfer and immediately sell it afterward, without holding the token on their balance sheets.
Nevertheless, these four reasons, supported by the final ruling in the SEC case, have transformed Wall Street's perception of the coin: $XRP has gone from a toxic outsider to a regulated and legal way to make a major bet on the digitalization of the global financial system.