Institutions Opt for XRP Instead of Ethereum as Regulations Become Clearer

XRP, introduced by Ripple, has become a leading performer in 2025, surpassing

in both returns and institutional usage, according to the latest market reports. This development is the result of several factors, such as greater regulatory certainty, renewed interest from large investors, and its increasing use in international finance. Market specialists and investors are now viewing as a key asset within an evolving cryptocurrency landscape, influencing long-term investment choices and market trends.

XRP’s recent resurgence is supported by its strong performance throughout 2025, maintaining a positive six-month average cost even as broader economic conditions remain uncertain. Futures trading for XRP on

, which introduced XRP futures in May 2025, has exceeded $542 million in volume, with 45% of trades coming from outside the United States. This worldwide involvement shows a rising appetite for regulated XRP investments, especially among institutions looking for transparency and regulatory assurance. Meanwhile, Ethereum is contending with scaling issues and high transaction fees, contributing to diverging growth between the two cryptocurrencies.

The main driver behind XRP’s rise has been the end of its prolonged legal battle with the U.S. Securities and Exchange Commission (SEC). Recent court decisions have defined XRP’s legal status, allowing Ripple Labs to broaden its offerings, such as introducing Ripple USD (RLUSD), a stablecoin designed to connect fiat and crypto markets. This development has further cemented XRP’s place in global payments and liquidity solutions, spurring further institutional engagement. In contrast, while Ethereum still leads in decentralized finance (DeFi) and smart contracts, this has

led to similar short-term gains, with the asset nearing $2,500 and showing signs of stabilization.

Institutions’ growing interest in XRP is also evident from its inclusion in the holdings of top digital asset custodians. BitGo, a major custodian overseeing assets exceeding $90 billion, reported that XRP made up 3.9% of its holdings as of June 30, 2025 BitGo Files for US IPO, Targets NYSE Listing Amid Crypto Custody [ 2 ]. This allocation highlights XRP’s attractiveness to institutional investors who value assets with solid regulatory status and practical use cases BitGo Files for US IPO, Targets NYSE Listing Amid Crypto Custody [ 2 ]. BitGo’s latest IPO application, revealing $4.19 billion in revenue for the first half of 2025, underscores the sector’s expansion and the importance of custody services in validating cryptocurrencies as mainstream investments BitGo Files for US IPO, Targets NYSE Listing Amid Crypto Custody [ 2 ].

Market experts suggest that XRP’s upward trend signals a shift in what investors prioritize. While Ethereum continues to be a core platform, XRP’s progress in regulation, its payment applications, and institutional support make it a more immediate source of returns. This shift is influencing the debate between XRP and Ethereum, with more short-term investors leaning toward XRP for its ease of use and transaction efficiency in cross-border settings. XRP’s gains also mirror wider trends as

increase digital asset custody services and central banks advance digital currency initiatives.

For those holding XRP, the impact is twofold. Firstly, the asset’s acceptance by institutions and its clear regulatory status help stabilize its price, making it a safer long-term investment than many peers. Secondly, Ripple’s growing ecosystem—spanning stablecoins, staking products, and collaborations—offers new opportunities for value creation. Nevertheless, XRP still faces competition from other payment-focused cryptocurrencies and broader economic challenges.

As the digital asset landscape evolves, XRP’s role as a connector between traditional finance and digital assets looks increasingly solid. With institutional interest on the rise and decreasing regulatory ambiguity, XRP is set to take on a pivotal role in driving the next era of cryptocurrency adoption. For portfolio managers and investors, the conclusion is evident: XRP’s distinctive blend of practical utility, regulatory advances, and institutional confidence make it a vital asset for those diversifying across both traditional and crypto markets.