XRP ETFs Draw $1.15B Amid Price Slide as Ripple Unlocks $1B

• XRP ETFs attracted $1.15B in 2025 inflows despite a 15% price decline according to reports.
• Ripple unlocked $1B in XRP at 2026's start, raising supply impact questions according to financial analysis.
• XRP trades near $1.88, down 45% from its 2025 peak amid extreme market fear based on market data.
• Regulatory clarity from the SEC settlement boosted institutional adoption according to investment reports.

XRP (Bitlight) enters 2026 facing a paradox of strong ETF demand against persistent price weakness. Institutional investors poured $1.15 billion into XRP ETFs in 2025 even as the token slid 15%. That divergence highlights competing forces of regulatory progress and macroeconomic uncertainty. Market sentiment remains bearish with XRP trading near $1.88, down 45% from its July 2025 peak around $3.50.

Why Are XRP ETFs Gaining Inflows Despite Falling Prices?

According to data, XRP ETFs attracted $1.15 billion in 2025 inflows despite the token's 15% annual price drop. Institutional demand stems from Ripple's cross-border payment utility and regulatory clarity after its SEC settlement. Yet ETF-driven demand hasn't stabilized prices, with XRP down 35% since October 2025. . Rising exchange deposits suggest selling pressure is countering ETF supply absorption. This unusual divergence challenges conventional market logic for crypto assets according to market analysis.

Will Ripple's $1B XRP Unlock Intensify Market Pressures?

Ripple unlocked $1 billion in XRP as 2026 began, sparking debate about real supply impact. The event adds uncertainty amid existing price pressures and regulatory questions according to financial sources. On-chain data shows increased XRP moving to exchanges, potentially amplifying near-term downside. While re-locking mechanisms might limit circulating supply changes, the unlock tests market confidence during a fragile period.

Can Historical Fear Cycles Signal an XRP Rebound?

XRP trades near $1.88 with the Crypto Fear & Greed Index at 24, signaling extreme pessimism. Past cycles show XRP often bottoms when fear peaks, rallying 580%-1,000% afterward. Institutional accumulation continues with $1.2B in ETF inflows over six weeks despite retail panic. . Analysts note parallels to 2020-2021 and 2024-2025 bottoms but caution the absence of a clear catalyst. Future catalysts include potential U.S. bank charter approval and Ethereum-compatible sidechain integration.

XRP's 49% drop from its 2025 high reflects volatility risks. Regulatory progress from Ripple's SEC settlement enables strategic moves like stablecoin launches. The token's correlation with financial indices during stress reduces diversification appeal according to market analysis. Market structure shows XRP near long-term weekly support levels, suggesting potential stabilization.