XRP News Today: XRP ETFs Fuel $1B AUM Surge as Institutional Demand Locks 400M Tokens

XRP-based exchange-traded funds (ETFs) are surging in popularity as institutional demand accelerates, with total assets under management now nearing $1 billion. Over 400 million XRP tokens—roughly 0.4% of the total supply—have been locked into institutional custody through these funds. The pace of accumulation mirrors early patterns seen with Bitcoin ETFs, signaling growing confidence in XRP's utility and regulatory clarity according to reports.

Canary Capital's XRPC ETF has emerged as the leader, surpassing $336 million in assets and setting a record for the highest first-day trading volume among 2025 ETF debuts. The fund's performance reflects broader investor appetite for regulated access to blockchain-based assets. Bitwise, Grayscale, Franklin Templeton, and REX-Osprey have also launched XRP ETFs, contributing to a competitive landscape that is rapidly expanding the market's reach according to market analysis.

Daily trading volumes for XRP ETFs have remained steady, with $35 million in combined activity reported in the latest session. Franklin Templeton's XRPZ led with $12 million in volume, while Bitwise and Canary Capital followed closely. These flows are pushing XRP into long-term institutional holdings, reducing its available float and supporting a stable trading range near $2.20 according to market data.

Why the Standoff Happened

Institutional adoption of XRP has been fueled by a combination of regulatory clarity and the token's evolving role in cross-border payments and institutional-grade investments. Data from Glassnode shows that wallets holding over 10 million XRP have grown their positions by 8% since October, reflecting one of the strongest accumulation periods since 2021. Open interest in XRP derivatives has also hit $4.3 billion, further confirming the depth of institutional involvement according to analysis.

The recent regulatory developments have eased concerns around Ripple and XRP, particularly after a long-standing legal dispute with the SEC. With uncertainty removed, traditional financial institutions are now treating XRP as a legitimate asset class. This transition has been supported by the launch of multiple XRP ETFs, which offer a familiar and regulated vehicle for institutional capital according to market reports.

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The XRP ETFs are reshaping market dynamics, with their combined inflows creating a structural liquidity sink that absorbs supply from the open market. Exchange-held XRP has dropped by 29% since February, with over 6.5 billion tokens withdrawn from major platforms. This supply squeeze, combined with rising ETF demand, is creating upward pressure on prices and reinforcing the token's institutional appeal according to market analysis.

XRP's price has maintained stability near $2.18, even as large quantities are being moved into custody. This controlled accumulation pattern contrasts with speculative price spikes and suggests a more mature market phase. Analysts note that while XRP faces competition from stablecoins like USDT and USDC in the remittances space, its role as a reserve-layer asset and its integration into institutional portfolios provide a unique advantage according to market analysis.

What Analysts Are Watching

Looking ahead, the next major milestone for XRP ETFs is reaching $1 billion in assets under management and locking 1 billion XRP into institutional vaults. At the current pace, this target appears achievable. Analysts estimate that maintaining weekly inflows of $100–$150 million could push XRP toward $3.50–$3.80 by the next cycle. More optimistic models even suggest a return to $5.00 if institutional retention remains strong according to market forecasts.

The broader market environment will also play a role in XRP's trajectory. While the token's market capitalization has grown to $135 billion—making it the fourth-largest digital asset—broader crypto volatility and macroeconomic factors could influence its path. With the Federal Reserve preparing for its next policy meeting, market participants are closely watching for signs of rate adjustments that could impact risk appetite according to economic analysis.