VanEck Exec Flags ‘Weak Utility Case’ for XRP Despite Market Visibility

• XRP utility doubts spread as VanEck highlighted missing developer traction while Bitcoin gained official backing.
• New XRP ETF debut drew strong volume, suggesting investor appetite despite ongoing utility doubts.

Matthew Sigel, head of digital asset research at VanEck, has expressed skepticism over XRP’s real-world utility even as the token remains a visible player in the crypto market. On X, Sigel wrote,

In a subsequent post, he questioned whether any significant developer activity or meaningful applications are being built on XRP, a factor often used to measure blockchain viability. Sigel contrasted this with Bitcoin, noting widespread adoption by institutional investors, including university endowments, sovereign wealth funds, and even central banks.

Additionally, he pointed out that twelve countries are mining Bitcoin with government backing, citing alignment with the electrical grid. Sigel’s criticism highlighted the difference in institutional backing, implying that Ripple’s token lacks comparable adoption or strategic integration.

Questions Rise Over XRP Gains From Partnerships

Pushback from XRP supporters led Sigel to revisit Ripple’s high-profile partnerships, which include ties with BlackRock and OntoFinance. Sigel responded by questioning whether any partnerships led to direct financial rewards for holders. He pointed toward the absence of clear links between project expansion and stronger token pricing.

He raised concerns around items like transaction fees, revenue streams, and token burns. His view suggested that no clear system connected adoption to price growth inside Ripple’s broader plans. For many investors, that argument landed hard, since they had been asking Ripple for stronger financial links for years.

VanEck’s place in ETF filings added more fuel. The firm pursued a spot Solana ETF in the United States earlier in 2025, yet avoided any filing tied to XRP. Major firms like Fidelity and BlackRock also stayed away from such filings. Many traders viewed the group decision as a sign of weak confidence.

Record XRP ETF Launch Counters Utility Doubts

Despite doubts over XRP’s functional value, market demand appears strong. The new Canary Capital’s spot XRP ETF (XRPC) recorded $58 million in first-day volume. That haul placed XRPC above more than 900 ETF launches in 2025, according to Bloomberg analyst Eric Balchunas. 

XRPC slightly surpassed the Bitwise Solana Staking ETF (BSOL), which began trading on October 28, establishing a significant milestone in crypto-linked ETFs. Canary Capital’s product is the first U.S.-based fund providing investors direct exposure to XRP without requiring them to hold tokens themselves.

Several additional spot XRP ETFs are in preparation. Issuers include Bitwise, Canary Capital, 21Shares, and Franklin Templeton, signaling rising institutional interest.

At present, XRP is trading at $2.30, reflecting a 7.59% drop in the past 24 hours. The performance indicates that while investor interest is notable, market volatility continues to challenge confidence in the token’s short-term trajectory.