Since its launch in 2012, Ripple (XRP) has made significant progress. Although XRP faced several challenging years following the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple in December 2020, the settlement has brought important regulatory clarity for investors. Over the years, XRP has also gained widespread recognition from institutional investors. Let’s explore whether institutional support could become a key factor in building trust among retail investors.
Can institutional adoption of XRP build trust among retail investors?
First, financial institutions do not invest in assets with unclear regulatory status. According to U.S. court rulings, retail purchases of XRP are not subject to securities laws, but institutional purchases are. This ruling significantly boosted market confidence, pushing the price of XRP to a historic high of $3.65 on July 18, 2026.
XRP also launched multiple spot ETFs by the end of 2026. ETFs provide another way for institutional investors to gain exposure to cryptocurrencies without holding the underlying assets directly. Earlier this year, Goldman Sachs disclosed that it holds XRP ETFs valued at approximately $153.8 million. As a leading financial institution, Goldman Sachs’ significant investment in XRP can be seen as a vote of confidence in XRP.
Institutional capital is a primary driver of financial asset prices. For example, after the U.S. Securities and Exchange Commission (SEC) approved several spot Bitcoin ETFs in early 2024, the price of Bitcoin (BTC) repeatedly reached new all-time highs. Institutions such as BlackRock and VanEck launched their own Bitcoin ETFs, formally entering the cryptocurrency space. Increased inflows into ETFs were one of the reasons Bitcoin (BTC) and Ethereum (ETH) reached new highs in 2025. Once the current bear market ends, the price movement of Ripple (XRP) may follow a similar pattern.
Although institutional investors are increasingly opening up to XRP, the asset's price has experienced a significant correction since hitting an all-time high in 2025. According to CoinGecko's XRP data, XRP's price has now fallen more than 62% from its peak. Therefore, while institutional funding can build confidence, it does not eliminate the inherent volatility of cryptocurrencies.