In a recent video, Jake Claver, founder and CEO of Digital Ascension Group, delves into why XRP has not seen massive adoption by institutions, despite its advantageous features for modern payments. Claver argues that the lack of significant institutional investment isn’t indicative of XRP’s technical merits but rather stems from a complex interplay of regulatory, operational, and coordination challenges faced by large financial entities.
Claver highlights a fundamental paradox: although XRP offers faster, cheaper, and more reliable alternatives to traditional systems like SWIFT, banks remain hesitant. He poses a critical question: “Why aren’t they adopting it yet?” His explanation centers around institutional strategies that prioritize legal certainty and market discretion rather than immediate, high-profile acquisitions.
A key point of his thesis is the method by which these institutions approach market entry. Claver notes that financial entities often utilize sophisticated execution strategies, such as time-weighted and volume-weighted average price techniques, to gradually build their positions in XRP. This approach minimizes market disruptions, allowing investors to accumulate significant holdings without triggering substantial price fluctuations. As such, this buying activity often goes unnoticed by retail investors, who lack the capital and coordination to generate similar market effects.
Claver also addresses the pivotal role of regulation in shaping institutional appetite for XRP. He references the recent ruling in the SEC’s case against Ripple, pointing to a key statement by Judge Analisa Torres affirming that XRP, in isolation, is not a security. Claver believes this development, coupled with a shifting regulatory landscape in the U.S., has started to alleviate hesitations around XRP’s adoption. He cautions, however, that while institutional interest may be warming, ongoing legal uncertainties still influence the pace of institutional decisions.
Moreover, Claver stresses that institutions are largely indifferent to the specific price points at which they accumulate XRP, indicating their confidence in its long-term value. He draws parallels to Bitcoin, where institutional accumulation began in earnest at higher price levels, suggesting that sophisticated players prioritize timing and liquidity over nailing the precise entry price.
In discussing future catalysts for price movements, Claver asserts that notable market changes will depend on institutional catalysts such as regulatory approvals, new product launches, and enhanced real-world usage of XRP. He posits that a “liquidity crisis” could expedite institutional engagement, leading to significant price re-evaluations.
Turning to potential developments on the horizon, Claver notes a multitude of integrations currently taking place behind the scenes, including nearly 300 global partnerships and various trials for Central Bank Digital Currencies (CBDCs) and stablecoins in countries like Palau and Bhutan. He argues that this meticulous approach aligns with the cautious nature of financial system upgrades, which typically require extensive testing and validation.
On the product front, Claver mentions recent advancements in futures ETFs and the potential listing of a spot XRP ETF as significant signs of institutional interest. He suggests late 2025 could be a crucial period for approvals, hinting at a forthcoming wave of institutional momentum that might not yet be reflected in XRP’s current price movements.
Throughout the discussion, Claver challenges the notion that retail holdings could impede institutional entry into XRP’s market. He argues that the percentage of XRP held by retail investors is relatively small compared to total circulation, implying that institutions have ample opportunity to secure their positions without worrying about competition from smaller investors.
Ultimately, Claver encourages retail investors to recognize the impending changes in the financial landscape, portraying XRP as a vital component for those looking to invest in future payment infrastructure. He acknowledges that this perspective diverges from some traditional crypto ideologies but positions himself as an advocate for aligning with institutional interests during this transformative period.
He concludes his remarks with a reminder that his insights do not constitute financial advice, reaffirming his strong belief in XRP’s potential as part of a significant shift in financial infrastructure. As the market stands, XRP is trading at $2.85, leaving many to ponder when the anticipated institutional adoption will finally materialize.
