Bitwise Asset Management has released a comprehensive report aimed at institutional investors that outlines the case for XRP as a long-term strategic asset. The guide, titled “The Investment Case for XRP,” has stirred notable attention within the crypto investment space, fueling a fresh wave of speculation about the future trajectory of the Ripple-associated digital asset.
A Professional Outlook on XRP’s Investment Viability
Bitwise’s Chief Investment Officer Matt Hougan and analyst Ayush Tripathi have authored a comprehensive 33-page report that thoroughly examines XRP’s market standing, evolution, technological framework, and potential returns on investment. The report targets financial professionals seeking to understand XRP from a fundamental and valuation-driven perspective.
Bitwise positions XRP as a longstanding player in the crypto industry. First launched in 2012, XRP has powered over 2.8 billion transactions and remains among the most actively followed digital assets. Despite this legacy, it remains a divisive token in the eyes of both retail and institutional audiences.
Proponents cite XRP’s low-cost, high-speed blockchain and its alignment with regulatory structures as reasons to be optimistic. On the other hand, critics argue that Ripple’s numerous partnerships have not yet translated into widespread utility. Concerns around centralization, XRP’s token distribution model, and its complex regulatory history persist.
Regulatory Landscape and the Trump Factor
A central theme in the report is the evolution of the U.S. regulatory environment. Bitwise acknowledges the drag XRP experienced during its protracted legal conflict with the SEC. However, the firm believes that the post-2024 political climate, particularly under the current Trump-led administration, has introduced tailwinds for XRP.
One symbolic milestone was the government’s recent move to include XRP in a strategic digital asset reserve, signaling growing institutional acknowledgment of the token’s potential. Bitwise views this shift as part of a broader pivot toward a more accommodative policy framework for digital assets, especially those in the payments and tokenization sectors.
Price Models: From Bearish Floors to Bullish Peaks
Using the Capital Asset Pricing Model (CAPM), Bitwise created a range of forecasts that reflect potential XRP outcomes under differing market and regulatory conditions.
In its most optimistic projection, the firm suggests XRP could soar to $4.48 by the end of 2025, with continued appreciation into double-digit territory by 2028, potentially reaching $20 by 2029
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and peaking at $29 in 2030. This scenario hinges on XRP securing a meaningful share of the global tokenization market, which is forecast to reach $11 trillion by the decade’s end.
A more conservative, yet still positive outlook sees XRP climbing to $3.90 by 2025, with incremental gains leading to a value of $13 by 2030. This path assumes steady growth in adoption, improved legal clarity, and continued development within the XRP ecosystem. It implies an average annualized return of approximately 27%.
The Bear Case: XRP Faces Stiff Headwinds
Bitwise also outlines a less favorable scenario, where XRP struggles to find product-market fit in a crowded digital asset landscape. Under this projection, XRP may dip to $1.82 this year, fall to $1.07 by 2026, and potentially plummet to $0.13 by 2030. The firm attributes this outlook to factors like persistent volatility, lack of institutional traction, and failure to compete effectively in areas like stablecoins or on-chain finance.
This negative case suggests an annualized loss of 59%, emphasizing the risks associated with any allocation to XRP under less-than-ideal conditions.
Industry Reactions and Community Discourse
Bitwise’s report has triggered vibrant conversations across the XRP community and beyond. While the guide stops short of making an outright recommendation, its publication validates XRP’s legitimacy as an investable digital asset.
As the crypto market matures and institutional capital becomes more selective, tools like Bitwise’s XRP guide are helping bridge the knowledge gap between legacy finance and blockchain-based assets. Whether XRP realizes its potential or not, it is clear that it remains a key subject of institutional interest heading into the next market cycle.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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