TL;DR
- Spot XRP ETFs are nearing $1 billion in inflows, surpassing the initial growth of BTC and ETH.
- High institutional demand has locked up more than 400 million XRP tokens in the exchange-traded funds.
- The approval of new funds, including leveraged ETFs, expands investment options for XRP.
Institutional demand is reacting unexpectedly in the investment products segment of the cryptocurrency market. XRP ETFs are gaining ground with capital inflows rapidly approaching the $1 billion mark. This unexpected surge occurs just weeks after their debut, signaling increased confidence in Ripple and its future regulated RLUSD stablecoin.
It is noteworthy that this capital surge has caused the XRP ETF to surpass the two largest assets, namely Bitcoin and Ethereum, in terms of growth and speed of initial adoption. The strong institutional demand has led to more than 400 million XRP tokens being locked up in these funds.
Data from SoSoValue shows that, on December 4th alone, XRP ETFs recorded a daily inflow of over $12.84 million. Key drivers include the Franklin Templeton XRP ETF (XRPZ) with $5.70 million and the Bitwise XRP ETF with $3.76 million. Launched in mid-November, spot XRP ETFs have accumulated between $874 million and $906 million in net inflows, on track to reach $1 billion faster than many of the early Bitcoin or Ethereum ETF launches.
New Products and the Attractiveness of XRP as an Institutional Asset
Pioneering firms like Canary Capital, which launched the first spot XRP ETF, and other major players such as Bitwise and Franklin Templeton, are driving this growth. Bitwise, for example, attracted over $105 million during its initial trading days.
The expansion of the XRP ETF market is solidified by the recent SEC approval for 21Shares to launch its spot XRP ETF (TOXR) on the Cboe BZX Exchange. Furthermore, REX Shares and Tuttle Capital have introduced a 2x leveraged XRP ETF, offering traders double exposure to daily XRP price movements. This product variety caters to different strategies and risk profiles.
It is important to note that despite the strength of the ETF flows, the price of XRP remains around $2.15, down 31% over the past two months, reflecting general weakness in the crypto market and cautious retail sentiment.
The migration of funds from BTC and ETH into XRP ETFs suggests that institutional investors are positioning themselves early. Analysts, such as the Boston Consulting Group, project that U.S. dollar-pegged stablecoin assets could grow to $2.5–$3 trillion by 2030.
In summary, Ripple’s regulated stablecoin, RLUSD, is well-positioned for global payments, making the XRP ETF surpass Bitcoin and Ethereum in attractiveness for institutional investors seeking liquid and regulatory-compliant assets.
