The world of digital assets is witnessing a pivotal development as Ripple, the blockchain payments company behind the XRP cryptocurrency, announces a strategic investment in the newly rebranded Bitwise Physical XRP ETP. This move underscores growing institutional confidence in XRP and signals a maturation of crypto-based financial products in traditional markets.
A Strategic Move Amid Rising Crypto Demand
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In a significant step forward for cryptocurrency accessibility, Ripple has confirmed its investment in the Bitwise Physical XRP Exchange-Traded Product (ETP). The ETP, which is fully backed by XRP, offers European investors a regulated and transparent way to gain exposure to one of the most widely used digital assets for cross-border payments.
Brad Garlinghouse, CEO of Ripple, highlighted the increasing global appetite for crypto-native financial instruments. "Global demand for exposure to the crypto asset class has exploded in 2025," Garlinghouse stated. "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."
This sentiment reflects a broader trend: institutional investors are no longer viewing cryptocurrencies as speculative novelties but as legitimate components of diversified portfolios.
Understanding the Bitwise Physical XRP ETP
The Bitwise Physical XRP ETP is issued under a prospectus approved by Germany’s Federal Financial Supervisory Authority (BaFin), ensuring compliance with rigorous European financial regulations. This regulatory approval enhances investor trust and positions the product as a secure gateway into the XRP ecosystem.
Originally launched in 2022 by ETC Group, the ETP became part of Bitwise Asset Management’s portfolio following its acquisition of ETC Group earlier in 2025. As part of a larger rebranding initiative, Bitwise has strengthened its presence in Europe’s growing digital asset market, with the XRP ETP serving as a flagship offering.
Hunter Horsley, CEO of Bitwise, praised XRP’s track record and technological foundation: "XRP and the XRP Ledger are among the most familiar and trusted blockchains in crypto." He emphasized that the rebranded ETP aligns with investor demand for reliable, transparent, and utility-driven digital assets.
Market Momentum: XRP’s Recent Surge and Investor Behavior
XRP has experienced significant price momentum in recent weeks, reaching its highest level in three years. During this rally, long-term holders realized profits exceeding $1.5 billion in a single week — marking the largest profit realization event for XRP since April 2021.
This surge in realized profits points to strong market confidence but also raises questions about short-term valuation. Analysts use the Market Value to Realized Value (MVRV) ratio to assess whether an asset is overvalued or undervalued relative to its historical cost basis.
According to data from Santiment cited by FXStreet, the MVRV ratio for XRP climbed to 217% — indicating that the current market value significantly exceeds the average acquisition cost of circulating coins. While this suggests substantial gains for early investors, it may also signal a temporary overvaluation that could temper further rapid price increases.
What Is the MVRV Ratio?
The MVRV ratio compares the total market capitalization of a cryptocurrency with the aggregate cost basis of all existing coins — calculated based on the price at which they were last moved on the blockchain. When the ratio exceeds 100%, it means the asset is trading above its average purchase price.
Historically, MVRV levels above 200% have preceded periods of consolidation or correction, as profit-taking intensifies. However, sustained high ratios can also reflect strong fundamentals and growing adoption — especially when supported by institutional developments like Ripple’s latest investment.
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Frequently Asked Questions
What is an Exchange-Traded Product (ETP)?
An ETP is a type of financial instrument traded on stock exchanges that tracks the value of an underlying asset — in this case, XRP. Unlike mutual funds, ETPs offer real-time pricing and liquidity, making them ideal for both retail and institutional investors seeking exposure to digital assets.
How does the Bitwise Physical XRP ETP work?
The product is fully backed by physical XRP holdings. Each unit of the ETP represents ownership of actual XRP tokens held in custody, providing direct exposure without requiring investors to manage wallets or private keys.
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Is XRP a good long-term investment?
XRP's utility in cross-border payments, low transaction costs, and scalability make it attractive for financial institutions. Combined with growing regulatory clarity and institutional backing — such as Ripple’s partnership with Bitwise — many analysts view XRP as a strong long-term candidate within the digital asset space.
Why did Ripple invest in the Bitwise XRP ETP?
Ripple’s investment supports broader adoption of XRP by expanding access through regulated financial products. It reinforces confidence in XRP’s compliance-ready framework and strengthens its position as a bridge currency in global finance.
What does a high MVRV ratio mean for XRP investors?
A high MVRV ratio suggests that many holders are sitting on unrealized profits. While this can lead to short-term selling pressure, it doesn’t necessarily indicate a bearish outlook — especially if fundamentals remain strong and new capital continues to enter the market.
How can European investors access the Bitwise Physical XRP ETP?
The ETP is listed on major German stock exchanges and can be purchased through traditional brokerage accounts, offering a seamless entry point into XRP without navigating cryptocurrency exchanges directly.
The Bigger Picture: Institutional Adoption Gains Ground
Ripple’s decision to invest in the Bitwise Physical XRP ETP is more than a financial move — it's a strategic endorsement of regulated crypto products. As global markets evolve, digital assets are increasingly being integrated into mainstream finance through vehicles like ETPs and ETFs.
This trend lowers barriers to entry, improves transparency, and fosters trust among risk-averse investors. For XRP specifically, such developments highlight its role not just as a speculative asset but as a functional tool in modern payment systems.
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With continued innovation and regulatory progress, the line between traditional finance and decentralized technologies continues to blur — creating new opportunities for investors worldwide.