XRP ETF Inflows: A Steady Rotation Amid Crypto Weakness

The flow divergence is stark. While Bitcoin and Ethereum ETFs have faced weeks of steady outflows, XRP-linked products are capturing roughly 50% of all new capital entering the altcoin ETF space. This is a commanding share of a market that includes several competing assets. Solana comes in second, drawing around 30% of fresh inflows, while Hedera accounts for the remaining 20%.

This rotation is defined by consistency. XRP ETFs have recorded negative flow days on just three occasions this month. By comparison, Bitcoin ETFs have posted outflows on nine separate trading sessions during the same period. That gap tells a story about where some investors are choosing to put their money right now.

The pattern is clear. Even on the market's worst days, when Bitcoin and Ethereum funds are shedding capital, XRP ETFs have continued to attract fresh inflows. Last week offered a stark snapshot: Bitcoin and Ethereum investment products together shed $250 million in outflows, while XRP pulled in $3.5 million. This steady accumulation highlights a specific capital rotation toward assets with perceived utility.

Price Action Reflects the Flow: A 6% Rally and Retail Surge

XRP's recent price action directly mirrors its ETF flow divergence. The token has rallied about 6% to trade above $1.43, a move that followed a weekly low near $1.31. This recovery is supported by a notable spike in retail buying, with one major exchange seeing spot purchase volumes surge 212% higher on a single day. That surge indicates spot buying has outpaced selling, a dynamic that aligns with the steady ETF inflows.

The scale of this capital rotation is striking. While XRP ETFs have drawn in a cumulative $1.24 billion since launch, that total pales against the $55 billion in cumulative inflows into Bitcoin ETFs since January 2024. Yet for XRP, the recent flow pattern is a key signal. Starting February 24, the spot ETF complex recorded about $6.13 million in cumulative two-day inflows, breaking a short drought and signaling a return to steady buying after a period of stagnation.

This flow momentum is now translating into price stability. The recent inflows came after XRP had already shed more than 32% from the start of the month, a pattern consistent with selective averaging into weakness rather than chasing strength. For now, the steady ETF buying and the retail volume spike are providing a floor, allowing the price to stabilize around the $1.40 area after a sharp three-month decline.

The Catalyst and the Watchpoints: Sustained Flows vs. Market Sentiment

The primary catalyst for XRP's recent move is clear: sustained positive flows are the key driver. After a period of stagnation, US spot XRP ETFs have recorded a steady two-day inflow streak, pulling in roughly $6.13 million since February 24. This pattern of consistent buying, with daily inflows around $3 million, signals that regulated capital is not capitulating at current levels but is selectively averaging into weakness. The shift is material for XRP, as it contrasts sharply with the year-to-date outflows seen in Bitcoin ETFs.

The critical technical levels to watch are the $1.40–$1.42 support zone and resistance near $1.45. The price has stabilized around $1.40 after a sharp three-month decline, and a break above $1.45 is needed to confirm a sustained recovery. The immediate risk is a drop below $1.37, which would signal a failed breakout and likely trigger a return to the prior trading range. This technical setup is the direct translation of the ETF flow pattern into price action.

Broader market sentiment will be a key watchpoint. The recent rally coincided with Bitcoin nearing $67,000, but the underlying driver for XRP appears to be specific utility and flow rotation, not general fear or greed. The Fear & Greed Index will be a critical indicator to determine if the move is driven by a broader market shift or remains a niche capital rotation. The ultimate test is whether the inflow streak can be sustained; a break in that pattern would signal the rotation is not structural and the recent stability is fragile.