XRP News Today: Institutional Demand Surges as XRP ETFs Trigger Supply Crunch

The XRP market is undergoing a seismic shift as institutional demand surges, driven by the recent launch of multiple spot XRP ETFs and a wave of inflows that have outpaced expectations. Franklin Templeton's XRPZ and Grayscale's GXRP debuted on November 24, 2025, with Bitwise's product dominating early trading volume at $13.9 million, underscoring the appetite for regulated exposure to the asset. These launches coincided with XRP's price rebound to $2.08, a 1.52% gain in 24 hours, as buyers re-entered the market after the token tested key support levels.

Inflows into XRP ETFs have exploded with daily net inflows hitting $164 million, and total assets exceeding $628 million, signaling a dramatic shift in institutional behavior. This surge is attributed to regulatory clarity following the resolution of Ripple's long-running legal battle with the U.S. Securities and Exchange Commission, which affirmed that XRP traded on public exchanges is not a security. Analysts note that the ETF structure itself - requiring physical XRP purchases during creation cycles - reduces available supply and amplifies market pressure, creating a feedback loop of demand.

Despite robust inflows, XRP's price has remained volatile, dipping below $2 in early December amid whale sales of 200 million tokens within 48 hours of the ETF launch.

Critics argue that the disconnect between inflows and price performance highlights structural fragility, with 41.5% of XRP supply currently in loss. However, proponents defend the asset, citing the slower nature of institutional flows compared to speculative capital. One analyst emphasized that the true impact of the ETFs may not materialize until 2026, when sustained demand could stabilize the market.

The debate over holding XRP directly versus through ETFs has intensified. Experts highlight that ETFs offer brokerage access and liquidity but lack direct ownership of the asset and incur management fees. In contrast, direct XRP ownership provides utility and lower long-term costs but requires navigating custody and tax complexities as highlighted in market analysis. This dichotomy reflects broader investor preferences as the market matures.

Institutional interest is further amplified by new products like CME's spot-quoted XRP and Solana (SOL) futures, set to launch in December 2025. These contracts, designed to track real-time prices with lower margin requirements, aim to cater to firms seeking diversified crypto exposure as reported by market analysts. The move aligns with a broader trend of institutional adoption, as XRP ETFs attract $179.6 million in inflows this week alone.

Looking ahead, analysts project a pivotal 2026 for XRP, contingent on regulatory stability and adoption of Ripple's expanding cross-border payment solutions. While some predict the token could reach $3–$5 by year-end if adoption accelerates, risks remain, including global regulatory uncertainty and competition from other blockchains as outlined in market forecasts.