XRP ETFs Amass $1.3B in 50 Days: Can the Rally Hold?

• XRP ETFs accumulated $1.3 billion in just 50 days with 43 consecutive days of positive inflows, signaling robust institutional adoption.
• Institutions poured $483 million into XRP ETFs during December 2025 despite a 15% price drop, while Bitcoin and Ethereum ETFs saw outflows.
• XRP price rallied 18% in early January 2026 as ETF inflows continued and technical indicators turned bullish.
• Exchange-held XRP supply dropped to a seven-year low of 1.6 billion tokens, reducing immediate sell pressure.

XRP presents a compelling institutional paradox: massive capital inflows through ETFs contrast sharply with retail-driven price volatility. Despite absorbing $1.3 billion in just 50 days since mid-November 2025, XRP's price dropped 15% in December. That divergence highlights a unique accumulation pattern where institutions bought relentlessly while retail investors sold. The new year brought a sharp reversal though, with XRP surging 18% in early January as technical structures improved and ETF demand persisted. This price-action disconnect raises critical questions about XRP's next phase.

Why Are XRP ETFs Attracting Billions in Institutional Capital?

XRP ETFs have become institutional darlings, amassing $1.3 billion with 43 straight days of positive flows and zero outflows since their November 2025 launch. Major firms like Canary Capital and Grayscale serve pension funds and sovereign wealth entities conducting thorough due diligence. Regulatory clarity following Ripple's August 2025 SEC settlement transformed XRP into a clean allocation opportunity. Unlike Bitcoin's store-of-value narrative, XRP offers real-world utility through Ripple's payment infrastructure and ODL technology. Institutions view XRP's utility focus as complementary to Bitcoin's reserve asset status rather than competitive. This mandate-driven accumulation reflects structural portfolio allocation instead of speculative trading.

Can XRP Price Overcome Bearish Signals and Rally Higher?

XRP price faces technical headwinds despite its 18% January surge, including a bearish death cross formation that typically signals extended downtrends. On-chain metrics paint a brighter picture though: exchange balances hit seven-year lows at 1.6 billion tokens, reducing immediate sell-side liquidity. The Taker Buy/Sell Ratio on Binance jumped to 0.991, its highest since November 2025, indicating buyers are executing at market prices rather than waiting. Ripple's strategic escrow management provides supply stability, with 700 million XRP re-locked in January representing 34% of total supply kept offline. Institutions absorbed approximately 1% of circulating supply through ETF purchases, creating long-term supply constraints. With retail selling pressure easing and institutional accumulation ongoing, XRP's fundamentals suggest potential for sustained recovery.