Why Stellar (XLM) Traders Are Turning Bullish Despite a 60% Flash Crash

Despite suffering a dramatic 60% flash crash earlier this month, Stellar (XLM) is drawing renewed optimism from traders and institutions alike.

Behind the recovery hopes lie a unique mix of fundamental developments, including the launch of a new physically backed ETP and key partnerships.

WisdomTree’s XLM ETP and Stellar’s Institutional Momentum Spark Renewed Optimism

On October 14, WisdomTree announced the launch of its Physical Stellar Lumens (XLMW) ETP across Europe. It is listed on the Swiss SIX Exchange and Euronext in Paris and Amsterdam. A forthcoming debut is expected on Deutsche Börse Xetra.

The ETP directly exposes Stellar’s native token, Lumens, through a fully collateralized, physically backed structure. The financial instrument has a management expense ratio of just 0.50%.

“This is the lowest-cost, physically backed Lumens ETP in Europe,” read an excerpt in the announcement.

The product is designed for institutional investors seeking transparent and regulated access to Stellar’s ecosystem. WisdomTree highlighted this as “a high-performance Layer-1 blockchain purpose-built to modernize global finance.”

Since its launch in 2014, Stellar has expanded from a niche remittance protocol into a globally distributed network. It powers cross-border payments, tokenized real-world assets (RWAs), and decentralized finance applications.

Its proprietary Stellar Consensus Protocol (SCP) enables near-instant transactions without mining rewards or excessive energy use.

“Stellar is one of the most established blockchains in the world, with a clear focus on solving real-world problems in cross-border payments and finance,” the announcement stated, citing Dovile Silenskyte, Director of Digital Assets Research at WisdomTree.

Stellar Deepens Ties with Global Banking

Further boosting confidence is news about José Fernández da Ponte, President and Chief Growth Officer of the Stellar Development Foundation (SDF). Ponte recently joined the International Advisory Board of Santander, one of Europe’s largest banks.

Big news! SDF's President & Chief Growth Officer, @josefdaponte, has joined @bancosantander's International Advisory Board.

With his background across fintech, payments, and blockchain, it's another step in connecting open networks and global finance