XRP News Today: XRP ETFs Near $1 Billion as Price Holds Key Support Level

XRP ETF Inflows Near $1 Billion as Price Holds Key Support
Ripple's XRP has found support near $2.03 despite a 7.9% decline over the past two weeks, with U.S. spot ETFs recording 15 consecutive days of net inflows totaling $861 million. Institutional buyers have been accumulating XRP through over-the-counter (OTC) channels, absorbing nearly 1% of the token's circulating supply. This quiet accumulation suggests that large financial desks are preparing for broader institutional adoption of Ripple's on-chain settlement infrastructure according to market analysis.

The price consolidation near $2.03 is being driven by a combination of regulatory clarity and growing demand for XRP-based products. Ripple's legal battle with the SEC, which concluded in August with the ruling that XRP is not a security, has removed a major overhang. This development has encouraged banks and payment providers to adopt XRP for cross-border transactions, increasing its real-world utility.

Meanwhile, Ripple's expansion into stablecoin infrastructure has added another layer of potential demand. The launch of the RLUSD stablecoin, a dollar-pegged asset on the XRP Ledger, has attracted banks and institutional investors looking for faster and cheaper cross-border payments. While RLUSD does not directly drive XRP's price, it enhances the broader ecosystem, which could create indirect demand for the token.

Institutional Demand and ETF Momentum

XRP ETFs are now on track to surpass $1 billion in assets under management, with major firms like Vanguard, Grayscale, and Franklin Templeton leading the way. These ETFs have drawn significant interest from institutional investors, particularly in the U.S. and Europe, with total inflows reaching $906 million as of December 8. The steady flow of capital into these funds reflects a growing willingness among traditional financial players to engage with crypto assets.

Ripple CEO Brad Garlinghouse has emphasized that the current momentum is just the beginning. He highlighted that crypto's share of the global ETF market is still in its early stages, with XRP ETFs currently representing a small fraction of the overall industry. As more institutions gain regulatory clarity and confidence in digital assets, Garlinghouse believes the inflows will continue to accelerate according to the CEO's statement.

The ETF inflows have also had a stabilizing effect on XRP's liquidity profile. On major exchanges like Binance and Coinbase, bid-ask spreads have narrowed to 0.06%, signaling improved market-maker confidence. XRP's realized volatility has dropped to 32.7%, its lowest in seven months, suggesting controlled distribution and gradual accumulation.

Regulatory Clarity and Market Sentiment

The resolution of Ripple's SEC case has been a key catalyst for XRP's recent performance. After years of legal uncertainty, the court's ruling in August 2025 cleared the way for broader adoption of XRP in institutional and corporate settings. This regulatory clarity has been a major draw for ETF providers and institutional investors seeking long-term exposure to digital assets.

Market sentiment, however, remains mixed. While ETF inflows have been strong, XRP's price has remained under pressure, trading below key moving averages and failing to show significant momentum. The Relative Strength Index (RSI) and other technical indicators suggest a consolidation phase rather than a breakout. Polymarket currently assigns only a 5% probability to XRP reaching $3.20 before the end of 2025.

Despite the bearish odds, some analysts remain optimistic about XRP's long-term prospects. They point to structural developments such as Ripple's expanding stablecoin infrastructure, growing adoption in cross-border payments, and potential macroeconomic factors like Federal Reserve rate cuts in early 2026. These catalysts could provide the necessary tailwinds for a stronger rally.

Risks to the Outlook

Not all forecasts are bullish. A recent AI model from ChatGPT predicts XRP will only reach $4.40 by March 2026, significantly lower than the $5–$6 targets set by some analysts. The AI model's caution stems from broader market uncertainty, including high U.S. Treasury yields, which make risk-free returns more attractive than speculative crypto assets. Additionally, XRP's price action remains below key technical levels, suggesting that further consolidation is likely before any meaningful rally.

A breakdown below the $2.00 level would be a critical warning sign. Such a move could trigger a retracement toward $1.84, where prior institutional bids were seen during October's consolidation phase. A sustained drop below $1.90 would also erase the current bullish setup, opening the door to further declines toward $1.80 or even $1.75 according to technical analysis.

For now, the focus remains on whether XRP can hold its key support levels while ETF inflows continue. If the price stabilizes and technical indicators turn positive, a rebound toward $2.10–$2.12 is possible. However, any failure to maintain momentum could prolong the current sideways trading pattern into early 2026 according to market observers.