Institutional Investors Favor XRP Over Solana

According to a report published by Coinbase and EY-Parthenon on Tuesday, institutional investors surveyed in January were more likely to own XRP than Solana.

While Bitcoin and Ethereum were widely held by 352 global respondents, 34% allocated to the Ripple Labs-linked token XRP, compared to 30% for Solana. Approximately 25% also owned Dogecoin.

The report noted that most institutional investors held only one or two cryptocurrencies aside from Bitcoin and Ethereum, which are easily accessible through recently launched exchange-traded funds (ETFs) in the U.S.

Though several asset managers have filed ETF applications for XRP and Solana, and analysts believe they have a good chance for approval, most investors find limited opportunities to gain exposure to these altcoins through traditional brokerage accounts.

Regarding registered vehicles holding crypto, most institutions preferred products resembling ETFs. While one in three institutional investors allocated to XRP or Solana, 29% favored holding assets in a digital wallet.

Despite the preference for wallets, the survey found that an investor’s location did not significantly impact their allocated altcoins. Although ETF applications have created excitement, the authors suggested that U.S. ETFs may not significantly influence ownership trends.

Nonetheless, 68% of respondents expressed likelihood to invest in new crypto exchange-traded products tracking a single asset, with XRP and Solana as examples.

The survey captured institutional trends until January 24, days after Donald Trump’s inauguration. Since then, Solana has lost all post-election gains, while XRP remains valued significantly higher than on Election Day.

Analysts believe Trump’s positive stance on crypto is more beneficial for XRP than Solana, especially given the regulatory challenges from the U.S. Securities and Exchange Commission (SEC), particularly the lawsuit against Ripple Labs over XRP sales.

Though the SEC’s collaborative approach toward crypto firms under Trump is noted, 53% of respondents expressed concerns over crypto’s “uncertain” regulatory environment.

In discussing key issues, 49% mentioned clarity between which digital assets are considered commodities versus securities, while half pointed to the need for clearer crypto custody rules.

The SEC has established a Crypto Task Force for clearer regulations, and lawmakers are considering a bill that would grant the Commodity Futures Trading Commission oversight of the industry.

Edited by James Rubin