XRP Was Never Designed To Be Dirt Cheap - JoelKatz Explains The Real Vision

XRP ETFs launched in late 2025 and attracted $1.2 billion in cumulative inflows, becoming the second-fastest crypto ETF after Bitcoin. However, inflows dropped sharply in March, with weekly inflows falling to under $2 million according to Yahoo Finance. Analysts suggest this reflects a lack of institutional conviction in XRP despite its initial success.

Institutional adoption has remained limited, with only 15.9% of XRP ETF assets held by institutional 13F filers. This is significantly lower than the 48.8% for Solana. Goldman Sachs holds the largest institutional stake but is believed to be for facilitating client orders rather than long-term investment.

Regulatory clarity is a major barrier for institutional investors, with 65% citing it as a key issue. The CLARITY Act is seen as the potential solution. If passed, it could trigger $5 billion in cumulative inflows for XRP ETFs.

Will Institutional Adoption Finally Take Off?

The CLARITY Act is expected to provide the legal certainty needed to unlock institutional adoption. A Q1 2026 13F filing from Goldman Sachs and a potential BlackRock XRP ETF filing are seen as key signals for institutional interest. These developments could indicate a shift in long-term conviction.

Analysts suggest that the institutional bet on XRP did not fade—it simply never fully materialized. A lack of sustained institutional demand has left XRP ETFs vulnerable to volatility and short-term market sentiment.

What Are the Market Signals Telling Us?

XRP currently holds an MVRV just under 2.0, near multi-year highs, indicating elevated unrealized gains relative to the previous seven years. This metric suggests that a significant portion of XRP holders are sitting on profits.

Google Trends data for the term 'XRP' also reveals notable activity. A spike in late 2024 corresponded with a price increase at that time. While search activity has cooled off, it remains elevated over the past year compared to any period since 2020.

A bearish divergence is emerging, with a lower high in searches but a higher high in XRP price. This could suggest a disconnect between market interest and price performance. If prices reach a new all-time high, search interest will need to surpass its July 2025 peak to avoid forming a bearish divergence.

What Can Investors Expect Next?

Investors are watching for signs of regulatory progress and institutional confidence. If the CLARITY Act is passed, XRP ETFs could see a significant increase in inflows. However, a failure to pass the bill could stall institutional adoption and keep XRP in a state of uncertainty.

The market remains in a wait-and-see mode. The potential for BlackRock to file an XRP ETF and the Q1 2026 13F filing from Goldman Sachs are being closely monitored. These events could provide clarity on the long-term future of institutional interest in XRP.