XRP ETFs surpassed cumulative net inflows of USD 1 billion after just 21 trading days. This makes them the second-fastest crypto funds to reach this milestone. Only Bitcoin ETFs achieved this threshold more quickly - in just four days.
With daily inflows of USD 10.89 million on December 15, XRP products crossed the USD 1 billion mark. In doing so, they extended a full month-long streak of positive inflows. Since their launch in mid-November, XRP ETFs have not recorded a single day of net outflows. Total assets under management rose to approximately USD 1.18 billion. The Canary Capital XRP ETF, which launched as the first product on November 13, accounts for the largest share of total inflows with USD 376.5 million. The momentum of XRP products stands in contrast to Bitcoin and Ethereum ETFs, which struggled with outflows over the same period.
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Faster growth than Ethereum despite absence of heavyweights
A comparison with other crypto ETFs highlights the momentum behind XRP products. Ethereum ETFs required 96 trading days to reach the USD 1 billion threshold, despite being launched by industry heavyweights such as BlackRock and Fidelity. XRP significantly outpaced this timeline, even though neither BlackRock nor Fidelity offer corresponding products. In addition, XRP’s market capitalization of around USD 113 billion remains well below that of Ethereum, which stands at approximately USD 354 billion.
One key difference: XRP ETFs benefited from the absence of an established Grayscale trust being converted into an ETF. In the case of Bitcoin and Ethereum ETFs, massive outflows from existing Grayscale trusts substantially dampened overall inflows. Grayscale’s Bitcoin Trust (GBTC) recorded USD 15 billion in outflows during the first three months following ETF approval. The Ethereum Trust (ETHE) has lost more than USD 4.8 billion since its conversion in July 2024. These outflows - driven by a historical discount trade - overshadowed inflows into newly launched products. XRP ETFs, by contrast, entered the market without this structural headwind.
The product lineup includes offerings from Canary Capital, Bitwise, 21Shares, WisdomTree, and Grayscale. Canary Capital dominates with a first-day trading volume of USD 58 million - the highest among all launched ETFs. Within the first trading hour alone, USD 26 million flowed into the product. The regulatory landscape has shifted in favor of issuers: US-based spot ETFs no longer require explicit SEC approval. The prerequisite is that issuers remove the delay clause from their S-1 filings, which then triggers an automatic 20-day countdown.
Institutional demand despite weak price performance
The continued inflows into XRP ETFs are occurring in an environment of declining prices. XRP is currently trading at around USD 2, roughly 47 percent below its July peak. Nevertheless, the 30-day inflow streak of XRP products represents a record. It surpasses both Bitcoin and Ethereum ETFs in this regard. Analysts interpret this as a signal of long-term institutional interest that exists independently of short-term price fluctuations.
The divergence between inflows and price performance raises questions about the immediate market impact. While ETFs are steadily accumulating XRP, the anticipated price increase has yet to materialize. This could be attributed to increased selling pressure from other market participants. After all, crypto markets have struggled for several months to establish a solid bottom.
Regulatory developments create a favorable environment
The approval of XRP ETFs marks a turning point in the regulatory treatment of the asset. Years of legal disputes between Ripple Labs and the SEC had delayed the development of institutional products. The decision by the Cboe BZX Exchange to file 19b-4 applications in February for Canary Capital, WisdomTree, 21Shares, and Bitwise paved the way for the November launches. Grayscale products followed on November 24 after the SEC gave its green light.
The simplified approval process - without explicit SEC authorization - significantly accelerates the market introduction of new products. Issuers only need to remove the delay clause and wait out a 20-day countdown. This reduces regulatory uncertainty while lowering barriers to entry for additional providers. ProShares and other issuers have already filed corresponding applications. As a result, the product lineup is likely to expand further in the coming months.
Institutionalization continues to advance
The performance of XRP ETFs underscores the ongoing institutionalization of the crypto market. With more than USD 1 billion in assets under management within a single month, the products are establishing themselves as relevant investment vehicles. Continued inflows despite weak price performance point to a stable foundation of institutional demand. Whether this will translate into higher prices over the medium term, however, will depend on broader market developments and further regulatory clarification.
The absence of BlackRock and Fidelity leaves room for future growth. Should these industry giants enter the XRP market, inflows could increase significantly. Even without these heavyweights, however, the current trajectory demonstrates substantial institutional demand. This is a positive signal for the long-term establishment of XRP as an institutional asset.
