Switzerland-based asset manager 21Shares outlined its investment case for XRP, citing regulatory clarity, institutional access, growing utility of XRPL, and predictable supply.
Nonetheless, he highlighted a major risk, which continues to haunt the underlying asset.
Why bullish on XRP?
Given Ripple’s years-long battle with the U.S. Securities and Exchange Commission and last year’s favorable outcome, the 21Shares report identified regulatory clarity as the first pillar. The August 2025 conclusion removed what the asset manager described as a major compliance hurdle for institutions, and the asset’s regulatory environment has further improved in 2026, giving it significantly clearer treatment than under the SEC’s previous mandate.
The second pillar is perhaps linked to regulatory clarity: expanding institutional access. Recall that several XRP spot ETFs hit Wall Street last November and attracted more than a billion dollars in a month and a half. As reported recently, cumulative inflows reached a new all-time high, above $1.7 billion, even during this difficult year for the asset.
Next, 21Shares outlined actual network usage, as the report states that XRP Ledger processed nearly $500 billion in on-chain value over the past 12 months. At the same time, Ripple’s stablecoin RLUSD grew from a market cap of $72 million to $1.6 billion in less than two years.
Assets tokenized on XRPL have also grown significantly, recently reaching $4 billion. The network continues to target payments, stablecoins and real-world assets.
Crypto commentator Vincent Van Code also weighed in on the 21Shares report, argue that Ripple’s broader infrastructure reinforces this proposition. They described it as a “ready-to-use, turnkey solution” for institutions looking to adopt digital assets.
Finally, the report mentions XRP’s fixed maximum supply of 100 billion tokens, with no ongoing inflation schedule and a small amount continuously burned by transaction fees.
Major uncertainty
Despite all the optimistic comments explained above, 21Shares pointed out a significant weakness in this thesis, as increased usage of XRPL does not automatically mean increased demand for XRP. Institutions can only use the network while holding XRP temporarily. In some cases, they can barely use the token.
The crucial question here is whether the expansion of payments, stablecoins, and tokenized assets will ultimately result in sustainable value accumulation for XRP.
For investors convinced that global finance will increasingly move on-chain, 21Shares argued that XRP offers one of the most regulated and institutionally connected ways to gain exposure to this trend. However, the investment case still depends on adoption ultimately translating into actual demand for the underlying asset, which continues to struggle against resistance at $1.40 at press time.
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