XRP News Today: Institutional Confidence Bridges Crypto and Traditional Finance with XRP ETF Surge

The first U.S. spot XRP exchange-traded fund (ETF), the REX-Osprey XRP ETF (ticker: XRPR), has officially launched and crossed the $100 million asset threshold, signaling a pivotal moment in the token's journey toward mainstream adoption. The fund, which began trading on September 18, now holds approximately $113.5 million in assets, with nearly 40% of its inflows attributed to institutional investors such as hedge funds and family offices, according to a TimesTabloid report. This surge in demand coincides with broader market optimism, as XRP's price climbed 5.4% to $2.57 amid heightened trading volumes, Coinpedia reported.

The ETF's structure, which holds 60% XRP directly and 40% physically backed non-U.S. XRP ETPs, provides investors with a regulated pathway to exposure without the complexities of self-custody, the TimesTabloid report explained. REX-Osprey, the fund's managing firm, emphasized its role as a hybrid between direct crypto ownership and traditional fund management, with daily trading volumes reaching 340,000 shares and intraday highs of $20.71 per share. The product's success reflects growing institutional confidence, particularly after Ripple's recent regulatory victories and strategic partnerships, including its acquisition of Hidden Road and collaborations with banks like State Street on tokenized money markets, Coinpedia noted.

Parallel to the ETF's launch, derivatives markets have seen explosive activity. CME Group reported over $26.9 billion in notional volume for its XRP futures contracts since their May debut, with open interest surging as institutional demand for the token intensifies, Coinpedia reported. This momentum is further underscored by the launch of XRP options on CME, which adds another layer of liquidity and hedging capabilities for investors. Analysts attribute this trend to XRP's expanding utility in cross-border payments and its integration with global banking standards like ISO 20022, according to a TradingView report.

Despite recent delays in U.S. ETF approvals due to SEC review pauses linked to government shutdowns, market participants remain optimistic. Institutions have pivoted to alternatives like futures and European ETPs to maintain XRP exposure, with surveys indicating most still plan to invest once U.S. approvals resume, the TradingView report observed. Ripple's RLUSD stablecoin, now backed by BNY Mellon, further strengthens the token's infrastructure by enabling faster settlements and reinforcing its role in financial networks.

The ETF's rapid growth highlights a broader shift in how digital assets are perceived. XRP is no longer viewed solely as a speculative token but as a foundational element of modern payment systems and liquidity networks, the TradingView report suggested. While regulatory uncertainties persist, the convergence of institutional adoption, derivatives activity, and regulatory progress suggests XRP is on a trajectory to mirror the success of Bitcoin and Ethereum.