Ripple has made a significant acquisition by purchasing brokerage firm Hidden Road for $1.25 billion. This event strengthens Ripple's position in the institutional finance sector.
Acquisition of Hidden Road
Ripple has acquired brokerage firm Hidden Road for $1.25 billion, becoming the first crypto company to own and operate a global multi-asset prime broker. This acquisition enhances Ripple's institutional presence and positions it as a direct competitor to traditional prime brokers in global finance.
Hidden Road serves a broad institutional client base, including hedge funds and algorithmic trading firms. Ripple has been a longstanding client of Hidden Road, making the transition smoother. The firm plans to scale its services significantly by integrating Ripple’s technology and financial backing.
Success of the XRP ETF
In another key development, on April 8, the Teucrium 2x Long Daily XRP ETF (XXRP) began trading in the U.S. The ETF recorded a trading volume of $5 million on its first day, ranking it among the top 5 percent of ETF debuts. Bloomberg ETF analyst Eric Balchunas described the volume as “very respectable” on the X platform.
The XXRP fund provides 2x leveraged exposure to XRP using swaps. The ETF is aimed at traders seeking short-term exposure to XRP volatility. It significantly outperformed a recently launched Solana-based leveraged ETF in terms of trading activity.
BTC Movements by BlackRock
Separately, asset manager BlackRock moved 3,296 BTC worth $254 million to Coinbase on April 9. The transaction sparked concerns about potential asset liquidation. While it is not confirmed as a divestment, the move coincides with continued outflows from BlackRock's Bitcoin ETF, IBIT.
The acquisition of Hidden Road and the successful launch of the XRP ETF highlight Ripple's ongoing development and its desire to strengthen its position in the growing digital asset market.
