XRP trades near $2.02, down about 12.9% in the last 30 days as of writing. Price action shows calm, yet institutional demand tells a louder story. U.S. spot XRP ETFs crossed $1 billion in assets under management, marking one of the fastest ETF growth streaks in the digital asset sector. This surge arrives just weeks after launch, and it now reshapes market expectations for 2025.
A Relentless Wave of Inflows Powers the ETF Boom
Five U.S. issuers now run spot XRP ETFs, and every one of them reports consistent inflows. The group has recorded consecutive days of net inflows since mid-November. No outflows appear anywhere in the data. The total now sits between $897 million and $1 billion, depending on the latest update.
Canary Capital leads with the strongest haul. Bitwise, Grayscale, and Franklin Templeton follow with growing demand from family offices and hedge funds. A new entrant, 21Shares, prepares to expand competition. Fresh issuers signal a deeper trend as institutions shift capital toward regulated crypto products.
Millions of XRP Flow Into Vaults as Supply Shrinks
The ETF buying wave locked 473.5 million XRP in regulated vaults, pulling nearly 0.5% of the entire circulating supply out of active markets. Analysts tracked this climb throughout the week as cumulative inflows surged. Grayscale played a major role. The firm added nearly 20 million XRP in a single day, pushing its trust above 103 million XRP and more than $217 million in AUM.
The move helped push combined ETF holdings above 400 million XRP, then above 470 million, and signals firm demand even during a period of weak price action. Traders now watch how supply removal influences future volatility once inflows slow.
ETF Flows Rise While Bitcoin and Ethereum Show Mixed Trends
The contrast between XRP ETF flows and larger competitors stands out. Bitcoin and Ethereum ETFs show uneven or negative inflows during the same period. XRP, on the other hand, draws capital every single day. Analysts call this divergence rare. Flow leads price, not the reverse. Institutions build exposure while retail traders sit out. Markets saw similar patterns in other assets before large price swings.
The price of XRP stays near $2 despite the surge in institutional buying. Social sentiment dipped into fear territory this week. Those conditions last appeared in October. The fear index does not match the inflow surge, creating one of the sharpest disconnects in the market.
Ripple’s Stablecoin Strategy Adds Fuel to Institutional Interest
Ripple’s growing role in the stablecoin ecosystem adds a second tailwind.They project that U.S. dollar-backed stablecoins could reach $2.5 to $3 trillion by 2030. Ripple positions its regulated stablecoin, RLUSD, as a bridge for global settlement flows.
Executives highlight a two-track system. XRP handles liquidity and settlement, while RLUSD manages daily payments and treasury operations for banks and payment firms. Institutional investors watch this model gain traction as tokenization and cross-border clearing gain attention across global finance.
The ETF inflows align with this growing strategic interest. Investors view XRP as infrastructure, not speculation. They accumulate early and reduce liquid supply while the market waits for catalysts in 2025.
The Next Levels Traders Watch Closely
Market watchers now focus on two milestones. The first is how fast new inflows push past the $1 billion line. The second is whether XRP’s price reacts once that level holds. If flows begin to influence price, traders expect sharp volatility. If the price stays stable, institutions may continue loading quietly.
Either path strengthens the long-term outlook. One fact now stands out across the sector. XRP ETFs attract capital while other crypto funds lose it. Demand does not disappear. It simply moves.
Source: https://coinpaper.com/12910/institutions-quietly-buy-473-m-xrp-as-et-fs-rocket-to-1-b-aum-why-big-money-is-piling-in
