The XRP ETF market has received another indication of institutional usage after a filing by Charles Schwab revealed the presence of XRP-related fund shares used as collateral. The filing, dated Sept. 8, has detailed information on positions in XRP ETFs worth almost $4.8 million in total.
This information has been obtained from the filing of Form N-MFP3, which was for the Schwab Prime Advantage Money Fund. In the filing, XRP-related exchange-traded funds have been mentioned as collateral assets.
Charles Schwab XRP ETF Collateral Details
According to the filing, Schwab Prime Advantage Money Fund disclosed that the total amount of Grayscale XRP Trust ETF shares held by the fund as collateral amounted to about $1.01 million.
The filing also noted that there was an approximate value of $3.06 million of Canary XRP ETF shares and about $702,000 of Franklin XRP ETF shares. In total, the three assets amounted to approximately $4.8 million.
It should be noted that the filing does not imply that the company Charles Schwab bought the XRP ETF shares for the money market fund. In turn, the Form N-MFP3 filing may include securities used as collateral in some financing operations or other deals.
This is significant in the sense that collateralized and outright ownership are not always one and the same. The disclosure serves to indicate that there was an arrangement with regard to XRP ETF Shares for the fund.
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More Institutional Exposure to ETF Products
However, the recent Schwab filing is not the only disclosure indicating institutional ownership of XRP-based instruments.
Clear Creek Financial Management disclosed that it owned 11,621 shares of the Bitwise XRP ETF as of June 30. Leisure Capital Management, on its part, has 16,745 shares of Franklin XRP ETF in its holdings for the second quarter.
Other financial firms that have filed disclosures showing their exposure to XRP-based exchange-traded products include Beacon Pointe Advisors and Brookstone Capital Management.
The above filings help provide a more comprehensive view of how XRP-based investment products are progressively being incorporated into institutional portfolios. Although individual investments may be small when compared to the total amount of assets managed by the various financial firms, it is clear that XRP ETF products are increasingly becoming popular.
XRP Activity Continues Despite Weak Token Performance
Another recent announcement made by Charles Schwab shows another key point that differentiates the activity in the XRP investment products and the XRP token performance.
At the moment, the value of the XRP token is far from its all-time highs and is down by about 60% since that period of time. Nevertheless, despite the unfavorable market environment for the asset, XRP ETF products keep appearing in financial disclosures.
This filing is unique in the sense that the XRP ETF shares have been filed as collateral instead of being just another portfolio holding in the conventional manner. This suggests that the use of XRP-related funds may be much more widespread for other institutional purposes.
For the XRP marketplace, such filings are beneficial since they give a broader perspective on the use of these funds than just the daily prices of XRP. They explain how institutions can gain exposure to XRP by investing in regulated instruments.
With an increase in institutional filing data, there will be greater insight into where the XRP ETF holdings are kept, what size the holdings are, and whether or not usage continues to grow in the industry.
XRP Bullish MACD Cross Signals Potential Market Bottom
Moreover, crypto analyst ChartNerd pointed out that XRP is now witnessing a bullish crossover of its two-week MACD, which is a technical signal in a much larger time frame.
The bullish MACD crossovers have often been seen at major market lows in the past. This current MACD signal does not indicate a rally immediately but gives a hint that the technical momentum in favor of XRP might have shifted.
There was also a bullish MACD crossover last year in 2022, following which XRP had seen a 45% retracement before laying a foundation and going higher. Given the history and current technicals, there could be some retracement before XRP starts rising. It must be noted here that past performance cannot be considered an indicator for future results.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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