- Former Ripple executive Sagar Shah said XRP digital asset treasuries offer more strategic utility than spot XRP ETFs despite strong institutional demand for ETF products.
- Shah argued that while XRP ETFs provide regulated exposure, DATs can deploy assets on-chain, generate yield and support deeper ecosystem adoption.
Institutional appetite for regulated XRP exposure is clearly there. The debate now is what kind of vehicle actually does more with that demand.
Sagar Shah, business development officer at Evernorth and a former Ripple executive, said XRP digital asset treasuries, or DATs, offer a more useful structure than spot XRP exchange-traded funds, even as ETF inflows continue to climb. His argument is not that ETFs lack value. It is that they stop where a more active treasury model begins.
“There’s been over a billion dollars in net inflows into XRP ETFs,” Shah said. “It tells you that institutions want exposure, but ETFs are a passive wrapper.”
ETFs bring access, but little else
Spot XRP ETFs are built in a fairly familiar way. They buy XRP and hold it on behalf of investors, giving both institutional and retail buyers a regulated route into the asset without requiring direct custody or on-chain interaction.
That model has already attracted significant capital. XRP ETFs have reportedly taken in $1.21 billion in net inflows, with assets under management nearing $950 million. Even so, that still amounts to only about 1.15% of XRP’s total market capitalization, which leaves plenty of room for other types of products to compete for attention.
The attraction of ETFs is obvious enough. They simplify access. They fit neatly into traditional portfolios. And for large investors, that wrapper often matters as much as the asset itself.
DATs aim to put XRP to work on-chain
Shah’s case for DATs rests on what happens after exposure is gained. Unlike ETFs, a digital asset treasury is designed to participate actively in the XRP ecosystem. That means treasury-held assets can be deployed on-chain, used to generate yield and potentially support broader network usage.
That distinction is where the comparison becomes more interesting. A DAT does not just hold XRP as a passive balance sheet asset. It can, at least in theory, become part of the ecosystem’s operating layer while still offering the transparency associated with a public company structure.
For investors, that creates a different proposition. ETFs may remain the easier on-ramp, and clearly they are already serving that role. But DATs are being pitched as something more flexible, more involved and, from Shah’s perspective, better aligned with how digital assets are actually meant to function.
