Dispatch #232: XRP: The next holy grail in crypto?

In this patch of your weekly Dispatch:

BTC’s solid levels
ETH heats up
Crypto’s major adoption

Market cast

Bitcoin’s search for a spark

Bitcoin remains in a holding pattern just below $96,000, as traders await a clear catalyst. Hot U.S. inflation data and muted ETF inflows have tempered momentum, but steady accumulation continues. Short-term holders have added 1.5 million BTC since September, bringing their total to 4 million BTC. Technically, BTC is trading within a well-defined $95,000 – $100,000 range, signaling a phase of consolidation. A breakout, either to the upside or downside, appears imminent, with macroeconomic events likely to serve as a key spark for the next major move.

Oscillators remain in neutral territory across most timeframes, further highlighting the prevailing uncertainty in the market. On the weekly chart, the price is hovering near the 20-week SMA, which also aligns with the middle band of the Bollinger Bands indicator, suggesting it could act as a support level if tested.

Shifting focus to the ETH/BTC pair, there are notable signs of a potential trend reversal and the formation of a bottom on the weekly chart. Furthermore, the RSI is emerging from the oversold zone (0–30), which is often interpreted as a bullish signal. This development hints that liquidity might begin to shift from Bitcoin to Ethereum in the near future, providing ETH with potential upside momentum.

The big idea

Is XRP about to get the lead?

The Big Idea on Dispatch is all about spotting the game-changers in the digital assets industry before they unfold. Last week, we spotlighted the contenders vying to break into the coveted world of exchange-traded products. After all, achieving holy-grail status for a crypto asset means becoming the foundation of an ETP. Could Ripple’s XRP be next in line, following BTC and ETH? A 10% weekly surge hints it just might:

The SEC has recently acknowledged XRP’s ETF application. This is an early yet significant step in the approval process and signals a potential formal ETF endorsement. Such moves often herald increased legitimacy, broader market participation, and enhanced liquidity for the assets involved.
Adding to this positive momentum, Ripple's CEO has expressed optimism about the progress of bipartisan crypto regulation in Washington. He highlighted that ongoing efforts to establish clear, supportive guidelines for digital assets not only protect investors but also foster innovation, positioning XRP well for future growth.
Market predictions from Polymarket now put the odds of an XRP ETF approval in 2025 at an impressive 81%. This strong forecast reflects that Ripple could be on the brink of a significant breakthrough, potentially solidifying its status as the next big thing in crypto. Yet again, time will tell.

Ethereum

Ethereum shifts into higher gear

Institutional ownership of Ethereum ETFs jumped from 4.8% to 14.5%, as major players like Goldman Sachs and Brevan Howard Capital increased holdings. As a result, we now have more positives to discuss despite ETH’s timid performance currently:

Developers are gearing up for the upcoming Pectra upgrade on the Holesky and Sepolia testnets, with crucial tests set for February 24 and March 5. Read more about this long-awaited upgrade on Nexo’s blog.
A New York Stock Exchange filing seeks to enable staking for Grayscale’s spot Ethereum ETF. If approved, this move would allow the ETF to stake its ETH holdings, potentially generating extra returns for investors.

TradFi trends

Proof of adoption, anyone?

Need more evidence that crypto adoption is booming across major institutions and entire states? There you go:

State legislation: West Virginia has introduced a bill to include Bitcoin in its treasury to hedge against inflation, joining a growing trend among states.
Institutional commitment: Barclays Bank has allocated $131 million to BlackRock’s Bitcoin ETF, signaling strong institutional interest.
Global and state investments: Abu Dhabi invested $437 million in Bitcoin, while Wisconsin doubled its Bitcoin holdings.
Corporate interest: GameStop is reportedly considering investments in Bitcoin and other cryptocurrencies.
Wider state adoption: Research suggests that Bitcoin reserves across 20 U.S. states could drive a $23 billion inflow as more states follow suit.

Hot in crypto

ADA’s solid gain

BTC, ETH, XRP – watch out now. Cardano’s ADA surged almost 15% in the past week to reach $0.80, outpacing other top cryptocurrencies and reversing a month-long downtrend. This impressive performance coincided with filing with the SEC to list the first Cardano (ADA) ETF on the NYSE, a move that underscores growing institutional confidence in Cardano’s blockchain.

The week’s most interesting data story

BTC’s strongest level?

Wondering why Bitcoin’s price appears stuck where it is now? $98,000 has emerged as a critical level for Bitcoin, with nearly 1 million coins – over 5% of its total supply – changing hands at this price band. Despite recent swings between $93,000 and $105,000, the market has consistently returned to $98,000, suggesting that key holders may be anchoring their positions at this level. This concentration of activity could indicate underlying support, shaping the dynamics for future price movements.

The numbers

Top 5 stats of the week

600,000 – A record number of new tokens was minted in January 2025.
269 BTC – Japan-based Metaplanet acquired BTC worth $26 million, raising its total holdings to 2,031 BTC.
$90,000 – Any BTC dip below that is seen as a “medium-term” buying opportunity, according to Standard Chartered.
$26.8 billion – Institutional investors held 25.4% of the AUM in spot Bitcoin ETFs at the start of 2025, according to K33 research.
60 – A new filing for a U.S.-based spot Cardano ETF represents the 60th such application in 2025.

Hot topics

What the community is discussing

Who’s next on that list?

One for all the bears out there.

The ETF guys get excited too!

Dispatch is a weekly publication by Nexo, designed to help you navigate and take action in the evolving world of digital assets. To share your Dispatch suggestions and comments, email us at [email protected]