XRP News Today: XRP ETF Inflows Clash with Whale Selling in Volatile Market

Ripple's XRP has drawn significant institutional interest despite a broader crypto market slump, with ETF inflows and whale selling creating a stark price dislocation. The token traded at $2.23, up 3.04%, after a week marked by a 12% decline from its peak, driven by heavy selling from large holders and a crypto-wide correction. This divergence highlights the tension between growing institutional adoption and short-term market volatility.

The surge in demand began with the launch of multiple XRP-focused ETFs, including Canary Capital's XRPC ETF, Amplify's fund, and Franklin Templeton's EZRP, which collectively drew $245 million in inflows within days. However, the optimism was short-lived. Whale selling of over 200 million XRP tokens in 48 hours following Canary's debut triggered a sharp price drop, mirroring Bitcoin's post-ETF slump in 2024. Analysts attribute this to a "sell-the-news" reaction, where large holders liquidate positions after regulatory milestones.

Franklin Templeton's entry into the XRP ETF market, with a $1.5 trillion asset manager launching its EZRP fund, underscored the institutional confidence in the asset. Bitwise and 21Shares also joined the fray, with Bitwise waiving fees for its XRPC ETF's first month. These launches come amid a broader crypto outflow crisis, where Bitcoin and Ethereum ETFs lost $1.6 billion in a single session, while XRP funds bucked the trend with $118 million in inflows.

The XRPL Foundation's Fabio Marzella explained the lag between ETF inflows and price action, noting that T+1 settlement cycles delay the transfer of funds to issuers. Additionally, much of the XRP accumulation occurs off-exchange via OTC desks, masking buying pressure. This dynamic suggests that ETF-driven demand could take weeks to reflect in on-chain metrics.

Projections for XRP's future remain bullish. If ETFs continue to buy $600 million worth of XRP monthly through OTC channels, the token's market capitalization could expand by $720 billion, potentially pushing prices toward $14. Analysts at the XRPL Foundation model a $7.2 billion inflow over 12 months, fueled by upcoming ETFs from Bitwise, 21Shares, and Grayscale.

Despite these fundamentals, XRP faces technical hurdles. It currently trades near $2.23, retesting a key support level that was a resistance during the 2021 bull run. A break above $2.74 could target $3.17, while a drop below $1.90 might signal further weakness. Meanwhile, institutional investors remain cautious, with $7.7 billion in XRP purchased by whales over three months - a trend often preceding significant price moves.

The broader crypto market continues to struggle, with $1.94 billion in weekly outflows - the third-largest since 2018. Yet XRP's resilience has made it a rare bright spot, attracting $89.3 million in inflows last week while Bitcoin and Ethereum faced redemptions. This divergence underscores XRP's unique position as a foundational layer in cross-border payments, with Ripple's infrastructure expansion and strategic acquisitions bolstering its appeal.

As the ETF landscape matures, XRP's ability to convert institutional inflows into sustained price gains will depend on resolving the disconnect between long-term fundamentals and short-term volatility. For now, the market remains divided between those betting on a parabolic rally and those wary of further corrections.