Ripple Invests in Rebranded XRP Exchange-Traded Product by Bitwise
Ripple CEO, Brad Garlinghouse, recently highlighted the increasing demand for crypto-backed investments in light of improving regulatory clarity in 2024. As part of a rebranding effort by Bitwise Asset Management to enhance its European product suite, Ripple XRP/USD announced plans to invest in the newly rebranded Bitwise Physical XRP ETP.
Garlinghouse emphasized the importance of this investment, stating, “Global demand for exposure to the crypto asset class has exploded in 2024. 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, with approval from Germany’s financial regulator, BaFin. Originally launched in 2022 by ETC Group, the ETP now forms part of Bitwise’s expanding portfolio following its acquisition earlier this year.
Bitwise CEO, Hunter Horsley, praised XRP’s utility and reliability, noting that XRP and the XRP Ledger are among the most familiar and trusted blockchains in the crypto space. Last week, long-term XRP holders realized profits exceeding $1.5 billion as the cryptocurrency reached its highest price in three years.
The Market Value to Realized Value (MVRV) ratio, a key market indicator, climbed to 217% on Tuesday, indicating 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 short-term overvaluation that could impact continued rapid growth.
The MVRV ratio measures the total market value of all circulating coins against the aggregate cost basis of those coins, providing insights into whether a cryptocurrency is overvalued or undervalued relative to its historical average acquisition cost.
