Newly launched XRP exchange-traded funds (ETFs) are drawing stronger-than-expected demand from both institutional and retail investors, according to several fund managers who entered the market in recent weeks. The early performance has led some on Wall Street to reassess XRP’s position in the broader digital-asset landscape.
Sandy Kaul, Head of Digital Asset & Industry Advisory Services at Franklin Templeton, said the shift is part of a larger trend in which professional money managers are exploring alternatives beyond Bitcoin and Ethereum. “I think we’re moving in that direction,” Kaul said, saying that the data coming in from ETF issuers is “very encouraging.”
A Stablecoin Advantage: RLUSD Changes the Equation
On Paul Barron Podcast, Kaul said XRP’s growing appeal isn’t just about ETF inflows. A major factor, she explained, is the chain’s unique positioning in the stablecoin market. “There’s a very interesting story playing out around stablecoins,” she said. “XRP is one of the only chains that also has its own stablecoin. That adds a new element to what they might be able to build around the chain.”
She pointed out that as more people become comfortable with Web3 models, the number of automated and computer-driven transactions is expected to surge. Networks that can support fast, low-cost, high-volume transfers, paired with their own stablecoin, are well-positioned to capture that activity. “This starts to become a compelling business case,” Kaul added.
Ripple Expands Globally Despite U.S. Legal Hurdles
Kaul said that Ripple, the company closely associated with XRP, continued to expand aggressively outside the United States even during the lengthy court battle with the U.S. Securities and Exchange Commission. While regulatory uncertainty slowed progress domestically, activity in Asia and other regions accelerated.
“We’ve been engaged with them in Asia for some time,” she said. “Now we’re seeing that spread to more regions of the world.”
Institutional Confidence Builds
As ETF interest grows and Ripple’s global footprint widens, Kaul believes XRP is gradually moving toward the level of institutional legitimacy already established by Bitcoin and Ether. “We’re seeing the early signs,” she said, adding that Franklin Templeton expects to deepen its partnership with Ripple as adoption broadens.
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