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- The former CEO of Ripple, Sagar Shah, said that the XRP digital asset is more profitable than XRP ETFs despite the fact that institutions are more interested in ETF products.
- Shah said that while XRP ETFs provide stable information, DATs can transfer assets on-chain, creating productivity and enabling deep adoption of the ecosystem.
Institutional passion controlled The transparency of XRP it’s there. The debate now is which type of car does the most and what is needed.
Sagar Shah, developer at Evernorth and former CEO of Ripple, he said XRP digital asset treasuries, or DATs, offer a much more efficient form of trading than XRP, despite the ETF’s rise. His argument is not that ETFs are worthless. That’s where they stop where the most effective way to save money begins.
“There’s been over a billion dollars invested in XRP ETFs,” Shah said. “It tells you that institutions want exposure, but ETFs are a correction.”
ETFs bring opportunities, but little else
Spot XRP ETFs they are built in a familiar way. They buy XRP and store it on behalf of investors, giving both institutional traders and sellers a way to manage the asset without the need for direct escrow or chain interactions.
That model has already attracted a lot of money. XRP ETFs are said to capture $1.21 billion in total assets, with assets under management approaching $950 million. Even so, this only leaves about 1.15% of the total XRP market capitalization, which leaves plenty of room for other types of assets to compete.
The appeal of ETFs is obvious. It helps to find it easily. They fit well into traditional patterns. And for big investors, the outfit is often as important as the asset itself.
DATs aim to put XRP to use on-chain
Shah’s case for DATs rests on what happens after exposure. Unlike ETFs, digital assets are designed to participate in transactions XRP Ecosystem. This means that stored assets and resources can be sent on-chain, used to generate profits and support the use of the wider network.
That contrast is where the comparison is most interesting. The DAT does not only hold XRP as a valuable asset. It can, perhaps, be a part of the ecosystem while providing transparency in relation to the structure of public companies.
For investors, this makes a different sense. ETFs may still be easier on the road, and they are apparently already doing the job. But DATs are being cast as something more flexible, more sensitive and, from Shah’s point of view, better suited to the way the digital economy is designed to operate.
