XRP ETFs Outperform Bitcoin and Ethereum as Institutional Demand Surges

XRP ETFs have attracted $1.37 billion in cumulative inflows since their launch in November 2025, outpacing Bitcoin and Ethereum funds during the same period. The inflows have continued despite price fluctuations, indicating strong institutional conviction. XRP ETFs maintained a 35-day streak of positive inflows, which ended on January 7, 2026, with a net outflow of $40.8 million.

The steady accumulation of XRP by institutional investors is reducing available exchange supply, which dropped from 3.76 billion to 1.6 billion by late December. This decline has been attributed to ETF creation processes, which move XRP directly into custody rather than keeping it on exchanges. The SEC's August 2025 settlement with Ripple clarified the token's status, enabling asset managers to allocate capital without compliance concerns.

Five major issuers now offer XRP ETFs: Canary Capital, Bitwise, Franklin Templeton, Grayscale, and 21Shares according to reports. These products have attracted over $1 billion in net assets within four weeks of launch, highlighting rapid institutional adoption. XRP's consistent ETF inflows contrast with the volatility seen in Bitcoin and Ethereum ETFs, which experienced significant outflows in early January.

Why Did This Happen?

The strong institutional demand for XRP ETFs reflects structural positioning rather than speculative trading. Institutional investors, such as pension funds and asset managers, are deploying capital based on approved mandates, which often involve systematic buying rather than short-term price movements. This pattern has been evident even as XRP retraced after a 30% surge in early January.

The 35-day inflow streak is a rare phenomenon in the crypto space, as Bitcoin and Ethereum ETFs recorded multiple outflow days during the same period. This suggests that XRP ETFs are being used for long-term strategic allocation rather than momentum-based trading. The inflows are also supported by declining exchange supply, which has tightened available XRP reserves to their lowest level since 2018.

How Did Markets Respond?

The XRP ETF outflow on January 7, 2026, was quickly offset as inflows resumed by January 14. The total inflow of $1.25 billion by that date showed resilience in the face of short-term profit-taking. In comparison, Bitcoin ETFs lost $681 million in the same week, while Ethereum ETFs shed $68.6 million according to data.

The price of XRP has fluctuated during this period, but the ETF inflows have acted as a support mechanism. Despite a 4% dip in the days following the $17.06 million ETF inflow on January 15, XRP remained near $2.06. This divergence between ETF inflows and price movements suggests that institutional buyers are absorbing selling pressure, preventing sharp declines.

What Are Analysts Watching Next?

Analysts are closely monitoring whether XRP ETF inflows can sustain above $300 million monthly. If this trend continues, it could lead to further structural support for the price. XRP's trajectory in 2026 will depend on institutional adoption, regulatory stability, and macroeconomic factors according to reports.

The market is also watching for signs that XRP could break out to the $4–$5 range, which would confirm sustained institutional conviction. Geoffrey Kendrick of Standard Chartered has projected XRP at $8 by the end of 2026, but reaching even $5 requires favorable conditions across regulatory, adoption, and macroeconomic fronts.

Looking ahead, XRP ETFs are expected to continue attracting capital as they lock in supply and support higher prices. With total ETF assets approaching $1.5 billion, institutional demand is clearly on the rise. If this trend continues, XRP could see further price appreciation as its circulating supply tightens and demand increases.