U.S. spot ETFs have doubled their XRP holdings since early this year to about $200 million, and 21Shares has presented four reasons to buy XRP now. On Sept. 11, blockchain media outlet U.Today reported that 21Shares cited clarity over XRP’s legal status in the United States, institutional liquidity created by spot ETFs, the XRP Ledger’s on-chain transaction volume and a limited supply structure as key grounds.

The biggest reason is legal status in the United States. After Ripple wrapped up SEC lawsuit procedures in August last year, XRP became one of the few altcoins with clear legal status in the United States. That has effectively removed compliance risks for conservative U.S. capital, and XRP inclusion has been assessed as an asset as safe as buying bitcoin from a legal standpoint, it said.

The second reason is institutional liquidity provided by spot ETFs. The new infrastructure has shown it can absorb large sell orders without market disruption. Earlier this year Goldman Sachs sold its entire $153.8 million XRP position, but retail investors and small funds took it up in about two weeks and there was no noticeable price drop.

The third reason is tangible on-chain transactions on the XRP Ledger. Over the past 12 months, the XRP Ledger’s on-chain transaction volume reached $500 billion. The network hosts $1.6 billion worth of RLUSD stablecoins and $4 billion worth of tokenised U.S. Treasuries.

The fourth reason is the supply structure. XRP has a total supply capped at 100 billion tokens, and additional issuance is technically impossible. A total of 14 million XRP has been permanently burned through transaction fees, and Ripple’s public escrow release schedule was also presented as a factor that reduces concerns about sudden dilution of investor holdings.

21Shares also flagged technical risks. It said XRP’s price does not automatically rise even if network activity increases. If large banks use XRP only as a bridge asset, they can buy it at the time of remittance and sell it immediately, so higher network use may not translate directly into long-term holding demand.

21Shares said Wall Street’s perception of XRP has changed since the SEC’s final ruling. It said XRP is being re-evaluated as a legal means of investing in the digitisation of the global financial system, rather than an asset with high regulatory uncertainty.