What to Know:
- A VanEck analyst questions XRP’s utility and adoption compared to Bitcoin.
- The analyst points out the lack of clear mechanisms linking XRP’s price to Ripple’s project adoption.
- Despite involvement in other crypto ETFs, VanEck has not pursued an XRP ETF.
The XRP community recently faced scrutiny as Matthew Sigel, VanEck’s digital asset research director, questioned the utility and real-world applications of the XRP blockchain. Sigel’s comments have sparked debate about the value proposition of XRP compared to more established cryptocurrencies like Bitcoin. His analysis centers on the tangible benefits and adoption rates of different crypto assets.
Sigel highlights the stark contrast between Bitcoin’s institutional adoption, including investments from university endowments, sovereign wealth funds, and even central banks, and XRP’s more limited integration. He also emphasizes the growing number of countries supporting Bitcoin mining due to its synergies with electrical grids, suggesting a broader acceptance of Bitcoin as a valuable asset.
Retail investors like University Endowments, Sovereign Wealth Funds, and today a Central Bank. 12 countries are now mining Bitcoin with direct government support, thanks to its synergies with the electrical grid.
Anyway by all means, invest away in XRP. I’m not stopping you.
— matthew sigel, recovering CFA (@matthew_sigel) November 14, 2025
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Sigel also challenges the notion that Ripple’s partnerships and initiatives directly benefit XRP holders. He argues that without clear economic mechanisms like transaction fees, revenue sharing, or token burns, the price of XRP may not be directly linked to the success and adoption of Ripple’s projects.
While VanEck has been actively involved in filing for crypto ETFs, including a spot Solana ETF, the firm has not pursued an XRP ETF. This decision places them alongside other major financial institutions like Fidelity and BlackRock, who have also refrained from seeking regulatory approval for such a product.
As the crypto landscape evolves, regulatory clarity and demonstrable utility will likely be key factors in determining the long-term success of various digital assets, including XRP. Investors will be watching closely to see how Ripple addresses these concerns and whether XRP can gain broader acceptance and utility in the market.
Source: Original article
