XRP Leads Institutional Investments, But Why Is the Price Stagnant?

XRP has emerged as a key player in the realm of institutional investments, generating significant capital inflows even while its price remains stable around $2. Recent data illustrates that money continually flows into Spot XRP ETFs, but despite this steady demand and growing bullish sentiment on social media, the price of XRP has not seen a corresponding increase, leaving many to wonder why inflows and price movements seem misaligned.

Key Takeaways

XRP is attracting strong institutional capital through Spot XRP ETFs, marking 19 days of consistent inflows.
Total inflows are nearing $1 billion, with assets under management exceeding $1.18 billion.
Retail sentiment towards XRP has become increasingly positive, ranking it among the most discussed cryptocurrencies this year.
Nonetheless, XRP's price has not increased significantly, primarily due to ongoing sell-side pressure from existing holders.
Continuous inflows need to grow significantly to reflect positively on XRP’s price, with a focus on maintaining the price above $2 in the upcoming sessions.

XRP

Strong Institutional Demand for Spot XRP ETFs

The interest in XRP is particularly evident through Spot XRP exchange-traded funds (ETFs). These ETFs have experienced 19 consecutive days of inflows, adding an impressive $20.17 million just on Friday.

Recent data from SoSoValue indicates that these inflows have totaled nearly $990.91 million, approaching the $1 billion milestone. Additionally, the assets under management for these ETFs are now over $1 billion, currently standing at $1.18 billion. For context, Spot Ethereum ETFs experienced outflows of $19.41 million last week.

This trend suggests a strategic and ongoing accumulation of XRP, with institutions gradually increasing their exposure. They are likely leveraging XRP's deep liquidity and its regulated status via ETF structures to make these moves.

Retail Sentiment Remains Positive, But Price Lags Behind

Another important observation about XRP is the increasing optimism among retail investors in recent days. Data from market intelligence firm Santiment, which tracks discussions on platforms such as X, Telegram, Reddit, and Discord, shows a significant rise in positive sentiment regarding XRP over the past week.

According to Santiment, XRP has been one of the most positively discussed assets this year, surpassing Ethereum in conversations. This surge in optimism points to trader confidence as XRP’s price consistently holds above $2. Notably, last week marked the seventh most bullish sentiment week for XRP in 2025.

Retail Optimism for XRP

Despite this combination of strong capital inflows and increasing positive sentiment typically leading to bullish market behavior, XRP has remained within a limited price range around $2.

A crucial factor here is the balance between buying and selling activity. The absence of significant price movement suggests that continued selling pressure from current holders has effectively absorbed the incoming demand, maintaining XRP’s price stability even as accumulation takes place behind the scenes.

This pattern holds true for ETF inflows as well. Although Spot XRP ETFs have seen 19 days of inflows, the daily amounts remain relatively modest. For a tangible impact on XRP's price, inflows would need to consistently reach the hundreds of millions of dollars. Currently, the most telling sign of improving sentiment is XRP’s ability to remain above $2 in the upcoming trading sessions, rather than any clear price breakout to the upside.

XRP Price Chart
Price action remains muted | Source: XRPUSDT on Tradingview.com