$1B Flows into XRP ETFs, Yet Price Remains Steady – Here's Why!

Summary:
Despite XRP's price remaining steady near the $2 mark, nearly $1 billion has flowed into U.S.-listed XRP Spot Exchange-Traded Funds (ETFs). This prolonged inflow indicates strong institutional accumulation, reflecting investor confidence in XRP ETFs as a reliable investment choice.

Key Takeaways

XRP has seen almost $1 billion in ETF inflows over the past 19 days.
The Franklin XRP ETF led the way with significant daily contributions.
Other altcoin ETFs, like Ethereum and Dogecoin, have not experienced similar success.
XRP’s price remains stable, indicating a focus on long-term positioning rather than short-term speculative gains.

XRP ETFs added $20.17M today

XRP ETF Inflow Analysis

According to data from SoSoValue, on December 12th, a significant amount of new capital flowed into favored institutional funds. Franklin’s XRP ETF (XRPZ) came out on top, attracting $8.7 million in just one day, making it the most popular option. Close behind was Bitwise’s XRP ETF, which pulled in $7.85 million, while Canary's XRPC ETF also performed well with $3.62 million in net inflows.

This trend shows that investors are selectively choosing ETFs based on factors like trust and liquidity. Interestingly, even funds from big players like Grayscale and 21Shares, which didn't see new inflows that day, are still maintaining their existing capital. This indicates that those initial investments are secure, suggesting a commitment to long-term strategies.

Other Altcoin ETF Analysis

The notable capital movement toward Ripple's XRP ETFs is in stark contrast to the mixed results seen with other regulated crypto products. For instance, the Solana (SOL) ETF managed to attract only $2.5 million in inflows. A more concerning observation includes the Ethereum (ETH) market, which reported significant outflows of $19.4 million on the same day. Meanwhile, investment offerings linked to Dogecoin (DOGE) from Bitwise and Grayscale failed to meet the initial excitement from investors.

Data from SoSoValue indicated there were no new inflows from December 7th to 9th, and the total trading volume for regulated DOGE products has plummeted to just $159,000, a significant drop from over $3.2 million recorded in late November.

What’s More?

In addition, the launch of 21Shares Spot XRP ETF ($TOXR) has provided more regulated options for investors, yet the price of XRP has continued to hover around $2.03, reflecting an 18.66% decrease over the last month. Overall, the recent ETF inflows appear to be aimed not at causing a rapid price increase, but rather at creating a stable price foundation for the future.

Final Thoughts

The ongoing accumulation in XRP ETFs underscores a positive long-term outlook despite XRP's current price stagnation. This trend suggests that investors are positioning themselves for stability rather than immediate gains.