NEW YORK — Bitwise's XRP exchange-traded fund has surpassed $500 million in assets, marking another milestone for cryptocurrency investment products available to American investors.
The fund reached more than $507 million in net assets after Monday's close, roughly nine months after its U.S. launch.
XRP Gains a Larger Place in Traditional Investment Accounts
The milestone highlights the growing role of exchange-traded products in cryptocurrency markets.
Bitcoin and Ethereum remain the largest digital assets by market value.
But investors are increasingly gaining access to other cryptocurrencies through regulated investment products.
XRP has maintained a large following among cryptocurrency investors.
The availability of an ETF gives investors another way to gain exposure without directly managing cryptocurrency wallets.
That could make the asset more attractive to traditional investors.
The growth of the Bitwise fund also provides a useful indicator of institutional demand.
The fund reportedly holds hundreds of millions of dollars worth of XRP.
That capital represents a significant change from earlier cryptocurrency markets, when investors generally had to use specialized crypto exchanges.
However, an ETF does not eliminate the risks associated with cryptocurrency.
Prices can remain highly volatile.
Regulatory developments can also have significant effects on digital-asset markets.
Investors therefore continue to monitor both market conditions and policy developments.
The growth of XRP investment products also reflects a broader change in Wall Street.
Financial institutions increasingly see cryptocurrency as an asset class that can be incorporated into conventional portfolios.
For American investors, that could eventually mean a much wider range of digital assets becoming available through familiar investment channels.
