XRP Rally Generates Record Profits Amid Ripple Labs Investment in Bitwise XRP ETF

Last week, long-term XRP holders saw astounding profits of over $1.5 billion as the cryptocurrency surged to its highest point in three years. This profit-taking behavior is normal after a rally and doesn’t necessarily mean a change in the overall sentiment toward the token.

Data shows that the Market Value to Realized Value (MVRV) ratio hit 217% on Tuesday, indicating that the current market valuation of XRP is significantly higher than its average purchase price. This may suggest a short-term overvaluation, potentially leading to a market correction.

XRP prices recently hit a local high of $1.60 before settling around $1.30, still up 31% over the past week. Positive factors like regulatory breakthroughs for Ripple Labs and the introduction of money market funds on the XRP Ledger have contributed to this surge. Ripple also announced plans to invest in the Bitwise Physical XRP ETP, leading to a 10% increase in XRP value. The ETP will now trade under the GXRP ticker on Germany’s Deutsche Börse XETRA.

Overall, the demand for exposure to the cryptocurrency asset class has been on the rise in 2024, driven by a growing interest in crypto investment products. With clearer regulatory guidelines in the U.S., the trend is expected to continue, boosting demand for crypto-based ETPs like the Bitwise Physical XRP ETP. This ETP, launched in 2022, allows European investors to access XRP with a 100% physical backing.