CNBC Names XRP the Hottest Crypto Asset for 2026 Amid Regulatory Breakthroughs

XRP has emerged as a key asset in the U.S. ETF market in early 2026, with spot ETFs attracting significant institutional capital. The token has seen a string of record inflows, with cumulative net flows surpassing $1.16 billion since the products launched in mid-November 2025. This has been accompanied by no reported outflow days in 2025, highlighting the growing confidence among institutional investors.

The U.S. spot XRP ETF market has seen daily trading volumes exceed $30 million, reinforcing XRP's appeal to traditional investors seeking diversified exposure to digital assets. These inflows have also contributed to a tightening supply of XRP on centralized exchanges, which has fallen to multi-year lows.

Despite strong ETF inflows, XRP's price remains near $1.87 as of early January 2026, consolidating within a range that has seen multiple tests of the $1.80 support level without a clear break. However, the Relative Strength Index on the weekly chart has begun to stabilize, and the MACD shows declining downside momentum, suggesting a potential shift in trend.

Why Did This Happen?

The growing demand for XRP ETFs can be attributed to regulatory clarity and institutional confidence in Ripple's cross-border payment solutions. Several U.S. investment firms, including Franklin Templeton and Bitwise, have launched XRP ETF products that are attracting capital at a rapid pace.

Regulatory developments have also played a role in boosting XRP's institutional profile. In December 2025, Roundhill Investments filed an updated XRP-related ETF with the U.S. Securities and Exchange Commission (SEC). While the filing does not create a direct XRP ETF, it confirms XRP's acceptance as a base asset for regulated financial products.

The expansion of XRP-powered payment corridors by Ripple is also expected to boost demand for the token. The company plans to scale XRP's use in high-volume regions and introduce new features through XRPL protocol upgrades in 2026, including lending and privacy enhancements.

How Did Markets React?

XRP's price reacted positively to the ETF momentum, climbing nearly 12% in early January 2026 as spot ETF inflows hit a record $48 million. The token pushed toward the $2.40 level, breaking through a key resistance zone that had capped upside for several weeks. This move was supported by strong volume surges, indicating fresh participation from both retail and institutional traders.

In contrast to Bitcoin and Ethereum ETFs, which saw significant outflows in December 2025, XRP ETFs continued to attract capital. This trend highlights a shift in investor preference toward altcoins with strong institutional infrastructure and cross-border utility.

The growing ETF activity has also led to a tightening supply of XRP on exchanges, which could increase the token's sensitivity to demand. Standard Chartered has projected that XRP could reach $8 by the end of 2026, factoring in ETF inflows and regulatory tailwinds.

What Are Analysts Watching Next?

Market participants are closely monitoring XRP's price action as it consolidates near key support levels. A clean break above the $1.80–$1.85 zone could trigger a move toward $3.00–$3.60, while a drop below $1.80 could open the door to retracements near $1.30–$1.50.

Analysts are also watching whale activity, which has turned net sellers over the past two months, according to CryptoQuant data. This sell-off has contributed to capped recovery efforts near $2 levels, potentially delaying further upside in a weak broader market environment.

The long-term outlook for XRP is also being shaped by ETF inflows and macroeconomic sentiment. Standard Chartered has estimated that a 4.4x move to $8 would require about $18.6 billion in inflows, which is significantly higher than the current $1.16 billion in ETF demand. This suggests that broader institutional participation and improved sentiment will be crucial for XRP to reach its full potential.

As XRP ETFs continue to attract capital, market observers will be watching for further regulatory developments and product innovations from Ripple. The coming months will be critical in determining whether XRP can maintain its momentum and deliver on the expectations set by analysts and investors.