XRP (XRP-USD) is suddenly the star of the cryptocurrency’s exchange-traded fund (ETF) boom. Since their launch in November, spot ETFs backed by the fourth-largest crypto have pulled in a massive $898 million in inflows. This is three times the amount raised by Solana (SOL-USD) products ($270 million) and stands in stark contrast to the $2.6 billion in selloffs seen by Bitcoin ETFs and the $691 million shed by Ethereum ETFs.
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This unexpected surge has pushed total inflows for XRP funds rapidly toward the $1 billion mark, surpassing the initial adoption speed of both Bitcoin and Ethereum ETFs. Bitwise Asset Management executive Katherine Dowling confirmed that the ETF boom “will continue,” calling the products a “good starter kit” for new crypto investors.
Institutional Demand Will Push Price ‘Higher’
The influx of capital highlights strong institutional demand, with more than 400 million XRP tokens being locked up in these new funds. Despite the current crypto market reeling from a $1.2 trillion downturn, leaving both XRP and Solana trading over 40% below their all-time highs set earlier this year, Bitwise remains bullish.
Dowling noted that both XRP and Solana have “promising fundamentals that make sense” and argued that the new ETF launches should increase demand and therefore push prices “higher”.
Wall Street Titan Vanguard Launches Spot Crypto ETF Trading
Further cementing the institutional shift, Vanguard—the $11 trillion asset management giant and once Wall Street’s most stubborn holdout—finally changed course last week and launched spot crypto ETF trading. The firm now allows over 50 million of its brokerage clients to buy and sell regulated crypto ETFs.
The move by Vanguard is a major concession to investor demand and follows giants like BlackRock (BLK), Fidelity (FIS), and Franklin Templeton (BEN) onto the crypto ETF bandwagon. Dowling suggested that while Vanguard lost some capital for waiting, “They are not too late as there is more capital out there to come in.”
Ultimately, all crypto tokens are scrambling for ETF issuance because the products theoretically increase demand and price for the underlying asset.
Key Takeaway
The final takeaway from this story is simply that you shouldn’t judge the entire crypto market by Bitcoin’s current trouble.
While Bitcoin and Ethereum ETFs saw billions of dollars leave, the huge demand for XRP ETFs proves that investors are looking past the current price crash. They are betting on altcoins like XRP because they believe those coins have strong, long-term foundations. XRP’s $900 million inflow is a clear signal that institutional money is not leaving crypto; it is simply shifting where it places its bets for the next big rally. The analyst’s point that the price should go higher due to the “promising fundamentals” means the technical adoption of the coin is more important than short-term selling pressure.
At the time of writing, XRP is sitting at $2.0954.
