The ETFs Battle: Where Does Ripple (XRP) Rank Vs. Bitcoin (BTC) and Ethereum (ETH)?

The 2025 crypto ETF landscape has become a battleground for institutional capital, with Ripple's XRP-based products emerging as a formidable challenger to Bitcoin (BTC) and Ethereum (ETH). While BTC and ETH ETFs faced significant outflows in November 2025, XRP ETFs attracted record inflows, signaling a structural shift in institutional demand. This analysis examines the market structure and institutional adoption potential of XRP, BTC, and ETH ETFs, drawing on the latest data to assess their competitive positioning.

Market Structure: Inflows, Outflows, and Trading Volume

XRP ETFs have defied the broader market's volatility, capturing institutional and retail attention with unprecedented inflows. By December 3, 2025, XRP ETFs had recorded $874.28 million in net inflows across products like Franklin Templeton's XRPZ and Bitwise's XRP ETFs, with cumulative inflows nearing $1 billion by year-end. This momentum was driven by a 13-day inflow streak, including the Canary XRP ETF's record $58.5 million first-day trading volume. In contrast, Bitcoin and Ethereum ETFs faced outflows of $3.79 billion and $1.42 billion, respectively, in November 2025.

The disparity in trading volume further highlights XRP's dominance. While BTC ETFs saw heavy redemptions-peaking at $1 billion on November 21-XRP ETFs maintained consistent inflows, with Grayscale's XRP Trust (GXRP) and Bitwise's offerings attracting over $915 million in holdings. This trend reflects a broader shift in institutional capital toward XRP, which has outperformed BTC and ETH in year-to-date price gains (89% for XRP vs. muted returns for BTC and ETH).

Market cap rankings also underscore XRP's growth. Despite BTC's $2.06 trillion and ETH's $416 billion market caps, XRP ETFs have surged to a $146 billion valuation, driven by regulatory clarity and product innovation. The SEC's August 2025 settlement with Ripple and the launch of spot XRP ETFs have created a regulated gateway for institutional exposure, reducing XRP's liquid supply on major exchanges by 29%.

Institutional Adoption: Regulatory Clarity and Product Innovation

Institutional adoption of XRP ETFs has been catalyzed by regulatory advancements and strategic partnerships. The SEC's streamlined approval process for commodity-based ETFs-reducing timelines from 270 to 75 days-enabled firms like Franklin Templeton, Grayscale, and Bitwise to launch XRP ETFs in late 2025. These products, including the RLUSD stablecoin and 21shares' FTSE Crypto 10 ex-BTC Index ETF, have diversified institutional access to XRP beyond cross-border payments.

Bitcoin's institutional adoption, while robust, has faced headwinds. Despite cumulative inflows of $57.56 billion since ETF launches, BTC ETFs recorded $3.48 billion in November outflows, driven by a 33% price decline and macroeconomic concerns. However, BlackRock's iShares Bitcoin Trust (IBIT) remains a top revenue-generating fund, with a $245 million in annual fees. Ethereum's institutional appeal has also waned, with ETFs posting $1.42 billion in outflows for the month, though a $312 million final-week inflow suggests lingering confidence.

XRP's institutional partnerships have further solidified its position. Grayscale's GXRP, launched on the NYSE, and Franklin's XRPZ have attracted over $915 million in holdings, leveraging trusted institutional brands to onboard new investors. Meanwhile, Ripple's rebranding of Hidden Road into Ripple Prime has enhanced its institutional-friendly infrastructure.

Regulatory Momentum and Future Outlook

The SEC's Q4 2025 deadlines for 90+ crypto ETFs signal growing regulatory momentum, with XRP ETFs benefiting from faster approvals. While BTC and ETH ETFs face scrutiny over price volatility, XRP's use cases in tokenized assets and cross-border payments have positioned it as a strategic addition to institutional portfolios.

However, challenges remain. Regulatory uncertainties and market volatility could delay further ETF approvals into mid-2026. For BTC and ETH, macroeconomic factors like the Federal Reserve's rate cuts and a weakening U.S. Dollar Index may drive renewed inflows. XRP's success will depend on sustaining its inflow momentum and expanding into tokenized treasuries, which saw AUM quadruple to $7 billion in 2025.

Conclusion

In the 2025 ETF battle, XRP has emerged as a standout performer, outpacing BTC and ETH in institutional adoption and inflow growth. While BTC's $2.06 trillion market cap and ETH's $416 billion valuation remain dominant, XRP ETFs have captured $1 billion in assets within months, driven by regulatory clarity, product innovation, and strategic partnerships. As the SEC's tokenization agenda gains traction, XRP's role in institutional portfolios is poised to expand, challenging the dominance of Bitcoin and Ethereum in the ETF space.