XRP News Today: XRP ETFs Fuel $723M Inflows, Spur Institutional Demand Rally

XRP has become a focal point in the cryptocurrency market as both retail and institutional investors shift strategies. Recent developments indicate a surge in demand for XRP through exchange-traded funds (ETFs), with notable inflows pushing total ETF-held assets beyond $700 million. Meanwhile, on-chain activity and DeFi integration are reshaping the asset's liquidity and utility.

A prominent development came as ETF clients purchased $89.65 million worth of XRP in a single period, bringing total net assets in XRP ETFs to $723.05 million. This marks a significant increase in institutional participation and reflects the growing preference for regulated structures in accessing digital assets. At the same time, XRP's price surged 8% as technical indicators and on-chain metrics aligned to support a fresh rally.

Canary Capital's XRP ETF (XRPC) became the largest U.S. spot XRP fund, amassing over $336 million in assets since its launch. This milestone highlights the competitive landscape in the ETF market, where major players like Bitwise, Grayscale, and Franklin Templeton are vying for a share of the expanding institutional demand.

How Markets Reacted

The inflows into XRP ETFs have created a dynamic shift in market supply and liquidity. As ETFs accumulate large quantities of XRP, those tokens are often moved into long-term custody, reducing the amount available for active trading. This structural squeeze could have meaningful implications for price discovery and volatility.

XRP Ledger activity has also surged, reaching multi-year highs with 40,000 account set operations and rising automated market maker (AMM) engagement. These developments signal growing utility for XRP in decentralized finance and cross-border payment systems, reinforcing its role as a bridge asset.

Meanwhile, DeFi protocols are tying up XRP in liquidity pools, staking rewards, and identity systems, effectively removing tokens from circulation. Analysts warn that this could lead to a supply shock as available inventory tightens and demand remains strong. Phil Kwok and Pumpius, two notable voices in the space, have emphasized that the current stability in XRP's price may mask underlying structural changes.

What Analysts Are Watching

Experts are closely monitoring how consistent these ETF inflows remain, as well as how macroeconomic conditions and regulatory updates influence investor behavior. A single strong inflow does not guarantee a sustained trend, but it does suggest growing confidence in XRP as an institutional asset.

The rise of XRP ETFs has also led to a transfer of wealth between retail and institutional participants. In November, retail investors removed approximately $808 million worth of XRP from centralized exchanges, while institutional entities added about $800 million through ETFs. This divergence highlights a growing institutional appetite for XRP and a shift in market dynamics.

Ripple's controlled release of XRP through its escrow system is another key factor in shaping the asset's supply and market behavior. Each month, Ripple unlocks 1 billion XRP, with the majority re-locked to manage supply flow and prevent oversaturation. This strategy has contributed to market stability and investor confidence.

Looking ahead, analysts expect continued ETF competition and regulatory clarity to drive further adoption of XRP as both a payments asset and a long-term investment vehicle. The evolving role of XRP in decentralized finance and tokenized assets is likely to strengthen its utility and demand.