XRP News Today: XRP ETF Inflows Surge on $89M Buy, Spur $10 Price Outlook

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XRP investors are abuzz with optimism as a top analyst forecasts the token could rise from $2 to $10 in less than a year. This prediction comes amid strong inflows into XRP exchange-traded funds (ETFs), with a recent $89.65 million purchase pushing total ETF-held net assets to $723.05 million. Analysts and market observers are watching to see if these movements signal the beginning of a sustained trend in institutional adoption.

ETFs have become a preferred vehicle for institutional investors to access XRP, offering regulated custody and streamlined reporting. These features make them an attractive option for firms with strict compliance standards. The latest data underscores growing interest in crypto through traditional financial channels.

Meanwhile, 21Shares is making progress on its XRP ETF, having filed an updated prospectus and lowered its management fee to 0.30%. The firm has also secured custodians like Coinbase Custody and Anchorage Digital Bank, ensuring secure and reliable handling of the asset. The ETF's launch is seen as a potential catalyst for further inflows into the XRP market.

Institutional Adoption Gains Momentum

The rising net assets in XRP ETFs highlight the growing acceptance of crypto by traditional financial institutions. Amonyx, a prominent crypto influencer, called the recent $89.65 million purchase "bullish" and emphasized its significance as a marker of institutional positioning. This trend is particularly notable because ETFs allow investors to access XRP without the complexities of direct crypto ownership according to a recent report.

Inflows into XRP ETFs have exceeded $700 million, with more than 400 million tokens now held in these products. This accumulation suggests a strategic buildup rather than short-term speculative trading. Analysts see this as a sign of long-term confidence in XRP's utility and market potential.

The increased demand through ETFs could influence the broader XRP market. When tokens are moved into long-term custody, it can reduce liquidity, potentially leading to price stability or upward pressure. This dynamic is especially relevant for XRP, which is primarily held in large institutional wallets or tied to Ripple's network operations according to market analysis.

XRP ETFs and the Path to $1 Trillion

With XRP's market cap at $137.12 billion, the token has room to grow significantly. Some analysts speculate that if XRP ETFs continue to attract capital, the asset could potentially add $1 trillion to its current valuation. This would value XRP at approximately $18.95 per token, far exceeding its historical highs and placing it among the most valuable companies in the world according to market forecasts.

The potential for such growth is bolstered by the recent launch of spot XRP ETFs, which have seen 15 consecutive days of net inflows. Total assets under management (AUM) for these ETFs now exceed $880 million, with daily inflows averaging around $10 million. This sustained interest suggests a shift in how institutional investors view XRP as a legitimate asset class according to industry reports.

The technical outlook for XRP remains mixed. While ETF inflows provide a bullish backdrop, the token has struggled to break above key resistance levels. XRP's price is currently below its 50-day exponential moving average (EMA), and the MACD line on the daily chart is preparing to cross below the signal line, indicating fading momentum. However, a daily close above $2.30 could signal renewed buying interest according to technical analysis.

What This Means for Investors

For retail and institutional investors alike, the developments in XRP ETFs offer a new and regulated way to access the asset. Bitwise's recent launch of its XRP ETF saw $25.7 million in trading volume on the first day, with $107.6 million in assets under management. This success highlights the demand for compliant crypto exposure, especially as the regulatory environment for XRP becomes more favorable according to market commentary.

Investors should monitor the performance of XRP ETFs, as well as broader market conditions, including interest rates and regulatory updates. The Federal Reserve's upcoming monetary policy meeting on December 10 could also influence investor sentiment, particularly if there are signals of a rate cut or pause in tightening.

While XRP's price has faced persistent bearish pressure, the combination of ETF inflows, growing institutional adoption, and technical indicators suggests that the token is in a critical phase. If XRP can break through key resistance levels and maintain a bullish trend, it could set the stage for a larger rally in the coming months.