Published: Friday, September 19, 2025 · 3:46 PM | Updated: Friday, September 19, 2025 · 3:46 PM
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🗝️ Key Points
- Traditional diversification principles apply to crypto investing, in which less correlated assets can cushion the portfolio from adverse price movements.
- The correlation matrix among the four assets highlights that XRP, in particular, has fairly low correlations to bitcoin, ether and SOL.
- XRP SOL ETH BTC XRP 1.0000 SOL 0.5506 1.0000 ETH 0.5665 0.6780 1.0000 BTC 0.5525 0.7522 0.7620.
In the world of digital assets investing, XRP and Solana (SOL) are the third and sixth largest cryptocurrencies by market capitalization after bitcoin and ether.1 Market participants with existing exposure to bitcoin and ether can look to XRP and Solana to diversify their return sources and manage risk.
Traditional diversification principles apply to crypto investing, in which less correlated assets can cushion the portfolio from adverse price movements. The correlation matrix among the four assets highlights that XRP, in particular, has fairly low correlations to bitcoin, ether and SOL.
|
|
XRP |
SOL |
ETH |
BTC |
|---|---|---|---|---|
|
XRP |
1.0000 |
|
|
|
|
SOL |
0.5506 |
1.0000 |
|
|
|
ETH |
0.5665 |
0.6780 |
1.0000 |
|
|
BTC |
0.5525 |
0.7522 |
0.7620 |
1.0000 |
Source: Correlation based on daily logarithmic returns from CF Benchmarks Rate publications from Jan. 2, 2024 through September 12, 2025.
Risk and returns tend to be linear among the four coins, with higher returns accompanied by higher volatility. XRP and SOL generally offer higher potential returns but come with higher volatility compared to BTC and ETH. BTC appears to be the most stable option, while ETH strikes a balance between risk and return.
In particular:
-
XRP has the highest average daily return (0.52%) among the four cryptocurrencies. Correspondingly, it exhibits higher standard deviation (5.89%) than BTC, ETH and SOL.
-
SOL has the second highest standard deviation of daily returns (5.13%), suggesting it is one of the most volatile assets of the group. Its mean daily return (0.32%) is higher than ETH and BTC, but lower than XRP.
-
ETH has a moderate mean daily return (0.24%) and a lower standard deviation of daily returns (4.10%) compared to XRP and SOL, indicating a more slightly stable profile.
-
BTC has the lowest standard deviation of daily returns (2.91%), making it the least volatile asset in this comparison. Correspondingly, BTC (0.27%) has the lowest daily average returns among the four.
|
Cryptocurrency |
Average Daily Return |
Standard Deviation of Daily Returns (Volatility) |
Risk/Reward Ratio |
|---|---|---|---|
|
XRP |
0.52% |
5.89% |
0.088 |
|
SOL |
0.32% |
5.14% |
0.062 |
|
ETH |
0.24% |
4.10% |
0.058 |
|
BTC |
0.27% |
2.91% |
0.092 |
Source: CME Group. Data from Jan. 2, 2024 – Sept. 12, 2025
For market participants with existing exposure to bitcoin and ether, these new futures offer an effective means to diversify returns and manage risk. To meet the market’s needs for additional coin exposures, CME Group launched large-sized futures and smaller-sized Micro futures on SOL and XRP in March and May 2025, respectively, to complement the existing Bitcoin futures and Ether futures product suite.
Since launch, trading volumes in our Solana and XRP futures suite have steadily increased, reaching an ADV of $212.4M for Solana futures and $178.3M for XRP futures. This strong market activity, along with open interest (OI) in these products, currently sitting at $1.8B for our Solana futures suite and $1.2B for our XRP futures suite, confirms the vital role these products play in professional crypto strategies. It’s a clear sign that investors are actively using them to manage risk and gain greater capital efficiency.
Margin credits for offsetting positions between Solana and XRP futures with other cryptocurrencies products are available, providing capital efficiency for market participants.
|
|
Bitcoin |
Ether |
|---|---|---|
|
XRP |
25% |
25% |
|
Solana |
30% |
40% |
Source: CME Group. Margin offsets information accurate as of Sept. 12, 2025 and subject to change.
Similar to traditional asset classes like stocks and bonds, digital assets possess distinct risk and return profiles. Both coins display higher returns and higher volatility characteristics. Market participants who already hold Bitcoin and Ether can benefit from diversifying into XRP and SOL.
View more information about our Cryptocurrency products, including the latest product innovations for XRP and SOL.
1 Market cap of bitcoin ($2.3T), ether ($556B), XRP ($182B) and SOL ($130B) as of September 12, 2025.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
Derivatives are not suitable for all investors and involve the risk of losing more than the amount originally deposited and any profit you might have made. This communication is not a recommendation or offer to buy, sell or retain any specific investment or service.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
CME Group Inc. does not have control over the content, accuracy, quality, or legality, of any third-party product, service, or content advertised on this webpage. The presence of such advertisements on this webpage does not signify any association, partnership, or endorsement of the third-party or its content by CME Group Inc.
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