TL;DR:
- XRP ETFs surpassed $1 billion in assets under management less than four weeks after their launch.
- The Ripple CEO attributes the success to “pent-up demand” for regulated crypto products from new investors.
- XRP funds dominated flows last week, registering inflows, while Bitcoin and Ether ETFs suffered outflows.
In the daily battle for the ETF segment of the cryptocurrency market, Ripple has just made history. The company’s CEO, Brad Garlinghouse, announced that XRP ETFs surpassed $1 billion in assets under management (AUM) less than four weeks after their launch.
With this achievement, XRP becomes the fastest-growing crypto spot ETF, surpassed only by Ethereum. XRP’s accomplishment occurs amid great market turbulence, with other leading assets struggling against massive sell-offs.
“Pent-Up Demand” from Regulated Investors Drives the XRP Rally
The digital market was in a fierce battle to recover, while Garlinghouse attributed the massive inflow into XRP ETFs to “pent-up demand” for regulated products. With managers like Vanguard opening access to crypto ETFs within traditional retirement and brokerage accounts, XRP is reaching a new class of investors seeking exposure without the technical complexity.
Garlinghouse stated that this new wave of “off-chain” holders prioritizes factors like longevity, stability, and community over cycles of speculation and hype.
This theory was reflected in the ETF market action during the first week of December. XRP ETFs were the leaders of the week with $230.74 million in net inflows, extending their winning streak to four consecutive weeks. In contrast, Bitcoin and Ether ETFs registered net outflows of $87.77 million and $65.59 million, respectively.
This behavior suggests that, while Bitcoin and Ether experienced a position readjustment, investors are actively rotating liquidity toward more stable regulated funds like XRP and Solana. The unprecedented success of XRP funds, which have already attracted nearly $900 million since their debut, solidifies it as a pillar in the regulated digital financial infrastructure.
