ETFs Are Cute, But DATs Get It Done: Ex-Ripple Exec Explains Why Treasury Beats Passive Exposure

Spot XRP ETFs have pulled in billions in net inflows—a clear signal institutions are warming up to the token. But according to one ex-Ripple insider, going passive might be leaving money on the table. Think of it like showing up to a potluck with a store-bought cake when everyone else brought homemade lasagna. Technically food, technically appreciated, but deeply mid.

Sagar Shah, Evernorth's BDO and former Ripple employee, argues that XRP Digital Asset Treasuries (DATs) offer something ETFs simply can't: actual participation in the ecosystem. "There's been over a billion dollars in net inflows into XRP ETFs. It tells you that institutions want exposure, but ETFs are a passive wrapper," Shah said. Translation: ETFs are the crypto equivalent of those people who own a grill but never actually cook anything on it.

The numbers back up the institutional appetite. Spot XRP ETFs currently sit at $1.21 billion in net inflows, with assets under management hovering near $950 million—roughly 1.15% of XRP's total market cap. That's a lot of money doing absolutely nothing except existing in a wrapper. Revolutionary stuff.

But here's where DATs differ, according to Shah: they can deploy assets on-chain, generate yields, and actively encourage adoption—all with public company transparency. "You don't get that from an ETF. There has been a valuable on-ramp to the XRP ecosystem for institutions and for building greater awareness," he added. It's the difference between owning a ticket to a party and actually being the one mixing drinks in the kitchen.

Evernorth Inches Toward Largest Public XRP Treasury

Ripple-backed Evernorth is pushing toward becoming the largest public XRP treasury. The company has raised over $1 billion in gross proceeds ahead of a proposed merger with Armada Acquisition Corp II, targeting a Nasdaq listing under the "XRPN" ticker. Evernorth also nominated Ripple CLO Stuart Alderoty and J Capital's Ted Janus to its board of directors—moves aimed at driving broader institutional participation beyond what traditional ETFs can offer. Basically, they're not just buying XRP—they're showing up with a strategy and a hard hat.

XRP Price Action

XRP slipped more than 3% to $1.33 over the past 24 hours, trading between $1.33 and $1.39. Volume dropped 13%, with traders booking profits following the US-Iran ceasefire rally. Tensions resurfaced after Iran accused the US of ceasefire violations amid Israeli strikes in Lebanon. Derivatives markets saw significant selling—XRP futures open interest tumbled 7% to $2.36 billion over 24 hours. Nothing says "geopolitical uncertainty" like watching your portfolio do the jitterbug because someone sent missiles for a Tuesday. The 4-hour XRP futures open interest on CME climbed 1.31%, while Binance saw a 1% decline.