XRP news today: 1.8 trillion asset management giant T. Rowe Price enters the market, multi-coin ETF includes Ripple.

T. Rowe Price is one of the largest traditional fund management companies in the United States, managing assets of up to $1.8 trillion, and has now finally ventured into the cryptocurrency space. The latest documents submitted to the SEC show that the company intends to operate a fund with a “diversified crypto assets basket”, aiming to invest in altcoins including XRP, SOL, ADA, AVAX.

T. Rowe Price's $1.8 trillion giant cryptocurrency transformation

T. Rowe Price is one of the largest traditional fund management companies in the United States, with a history dating back to 1937. It has now finally ventured into the field of Crypto Assets, but not just through another Bitcoin tracker. A document submitted to the U.S. Securities and Exchange Commission (SEC) on October 22 shows that this $1.8 trillion company aims to operate a fund with a “diversified basket of crypto assets,” targeting investments in 5 to 15 cryptocurrencies.

This positions T. Rowe among a small club of key players who design products around active management rather than simple exposure. This is different from BlackRock's spot Bitcoin ETF (currently holding about $90 billion) and Fidelity's $23 billion fund. These are merely passive Bitcoin vehicles; T. Rowe's approach resembles that of an equity fund, where managers aim to achieve superior performance through making informed allocation choices across various assets.

This is T. Rowe's attempt to restart growth. The Baltimore-based company has seen funds flow out of its mutual funds over the years, many of which have failed to keep up with passive benchmarks. Since 2021, despite the general market rise, the assets they manage have lost more than $67 billion. CEO Rob Sharps has faced pressure to modernize the 87-year-old company, especially in the context of young investors increasingly completely avoiding traditional funds.

Crypto Assets provide them with a new battlefield, and active management may still be effective. They have established trading infrastructure and possess “end-to-end capabilities” for custody and execution. T. Rowe has historically been more conservative than peers like BlackRock, and they were noticeably absent from the first wave of spot Bitcoin ETF issuances. This makes their strategy of investing in multiple coins even more surprising.

T. Rowe Price wants a managed space for a basket of Crypto Assets, which can accommodate Solana and XRP. Their goal is to outperform the FT Cryptocurrency US Listed Index (top ten exchange-listed tokens) while maintaining the freedom to navigate bends when others are taking detours. This active management flexibility is its core selling point, allowing the management team to dynamically adjust the weights of various assets based on market conditions.

XRP today's news brings significant positive developments, square root weight adjustment

The most important development in today's news about XRP is its inclusion in T. Rowe Price's multi-coin ETF. The FT Cryptocurrency US Listed Index currently includes Bitcoin and Ethereum, as well as alts like Solana and XRP, suggesting a possible form of the portfolio. Their square root weighting means that smaller assets will receive a larger proportional allocation compared to a typical market cap model.

The square root weighting is an innovative allocation method. In traditional market capitalization weighted indices, Bitcoin might account for 50%, Ethereum for 20%, while XRP only accounts for 2%. However, under the square root weighting model, for example, if Solana accounts for 5% of the crypto assets market cap, then under this model, its allocation ratio could be close to 15% to 20%. This algorithm significantly increases the allocation ratio of mid-cap assets like XRP, Solana, and Cardano.

Regarding today's news on XRP, this means that T. Rowe Price's ETF may allocate a weight to XRP that far exceeds its market capitalization ratio. If XRP currently accounts for 3% of the entire Crypto Assets market, it could receive an allocation of 10% to 15% under the square root model. If T. Rowe's ETF attracts $10 billion in funds, XRP could see institutional buying of $1 to $1.5 billion.

T. Rowe Price Multi-Coin ETF Potential Holdings Composition:

Bitcoin and Ethereum: As mainstream assets, they still have the highest share, but the proportion is lower than market capitalization weight.

High-performance public chains: Solana, Avalanche, Cardano receive super proportional allocation

Payment Assets: XRP, Stellar benefit from square root weighting increase.

DeFi Infrastructure: May include Chainlink, Polkadot, etc.

This configuration strategy constitutes a significant benefit for XRP in today's news. The long-term issue faced by XRP is the low allocation ratio of institutional investments, with most institutional funds concentrated in Bitcoin and Ethereum. T. Rowe Price's square root weighting model has changed this pattern, providing XRP with a new channel to attract institutional funds.

Active Management Challenges Bitcoin's Dominance

This is crucial because, so far, all mainstream ETFs have solidified Bitcoin's dominance. A multi-asset strategy may ultimately be able to distribute liquidity more evenly across the upper tier of Crypto Assets. This structure also indicates that institutional investors are gradually accepting alts within the regulatory framework. By sticking to “listed” assets, the index effectively limits the fund to tokens traded on exchanges that comply with U.S. regulations, thereby expanding the range of options while providing legal protection.

For investors, this means access to assets such as Solana, Cardano, or XRP without dealing with unreliable offshore products. This is a key development for XRP news today, as it provides U.S. compliant investors with a formal channel to access XRP without the need to open accounts directly on crypto exchanges or worry about regulatory risks.

The impact on the crypto assets market is profound. Currently, institutional capital flow mainly provides liquidity to Bitcoin, with a small amount flowing into Ethereum. If approved, T. Rowe's fund is expected to create a more balanced institutional demand across various asset classes. T. Rowe manages over $1.8 trillion in assets, and even a small allocation could bring in billions of dollars in potential inflows for alts. If T. Rowe allocates 0.5% of its managed assets to this ETF, that would be $9 billion, of which XRP could receive $1 to $1.5 billion.

There is a bigger strategy here: an active multi-asset ETF may shape the next wave of Crypto Assets fund flows. BlackRock and Fidelity have built empires on the simplicity of Bitcoin; T. Rowe bets that people now need professionals to judge the future direction. The fund will test whether Crypto Assets can evolve from single-asset investments into managed allocations, similar to the way large institutions diversify investments across industries.

The timing also coincides with changes in the political climate. With Trump supporting digital assets and the Chicago Mercantile Exchange (CME) planning to launch 24-hour cryptocurrency futures trading next year, traditional finance is making more room for digital assets. T. Rowe's actions perfectly align with this trend: cryptocurrencies are shifting from fringe speculation to a legitimate asset class.