XRP news today: Ripple's XRP Surges 10% in Q1 2025, Institutional Demand Drives ETF Interest

Generated by AI AgentCoin World
Wednesday, May 7, 2025 2:39 am ET2min read

Ripple, the company behind the XRP cryptocurrency, has announced significant updates to its quarterly XRP Markets Report, reflecting a surge in institutional demand and growing interest in exchange-traded funds (ETFs) related to XRP. This move comes as Ripple continues to navigate the evolving landscape of digital assets and regulatory scrutiny.

The enhanced XRP Markets Report will provide more detailed insights into the market dynamics of XRP, including institutional adoption and the increasing popularity of ETFs. This development is particularly noteworthy given the recent bullish Q1 report shared by Ripple, which highlighted positive market trends and growing institutional interest. The report also noted the successful debut of Teucrium's 2x Long Daily XRP ETF, which garnered significant attention and volume, ranking among the top 5% of new launches. This indicates a strong appetite for XRP-related investment products among institutional investors.

In Q1 2025, XRP maintained a remarkable performance thanks to regulatory relief after the SEC (Securities and Exchange Commission) withdrew its Ripple appeal. XRP outperformed Bitcoin [BTC] and Ethereum [ETH] on ETF-based demand and price fronts. XRP-based investment products outperformed their Bitcoin and Ethereum counterparts, recording $37.7M in inflows and bringing their year-to-date total to $214M — just $1M shy of overtaking global Ethereum funds. Even in April, XRP-based investment products attracted massive inflows.

The surge in institutional demand for XRP is driven by several factors, including the cryptocurrency's utility in cross-border payments and its potential to disrupt traditional financial systems. Ripple's strategic initiatives, such as its recent acquisition bid for the second-largest stablecoin issuer, further underscore its commitment to expanding its ecosystem and enhancing the value proposition of XRP. These efforts are aimed at attracting more institutional players and fostering broader adoption of the cryptocurrency.

XRP outperformed BTC by 10% on the price front in Q1 2025. The XRP/BTC ratio increased yet another time in Q1 by more than 10%, highlighting the strong relative performance against the major currency in the ecosystem. However, BTC has strengthened against the altcoin lately, despite the 10% lead in Q1 2025. In April, XRP slipped by 8% against Bitcoin and was down about 4% in the first week of May.

For XRP Ledger, the report noted that network activity dropped by over 30%, mirroring the broader market’s contraction in Q1. As of 31 March 2025, Ripple reportedly held 41.69 billion XRP tokens – About 75.8% of the circulating supply (about 55 billion tokens). In fact, Ripple claimed that it will periodically update its XRP holdings for the next 42 months.

The growing interest in ETFs related to XRP is another key indicator of the cryptocurrency's increasing mainstream acceptance. ETFs provide a more accessible and regulated investment vehicle for institutional investors, who may be hesitant to directly engage with cryptocurrencies due to regulatory uncertainties and market volatility. The successful launch of Teucrium's ETF suggests that there is a growing demand for such products, which could further drive institutional investment in XRP.

Ripple's decision to revamp its XRP Markets Report is a strategic move to provide more transparency and insights into the market dynamics of XRP. This enhanced report will help institutional investors make more informed decisions and could attract more capital into the XRP ecosystem. As the cryptocurrency market continues to evolve, Ripple's proactive approach to addressing institutional demand and regulatory concerns positions it well for future growth and adoption.