XRP News Today: XRP ETFs Attract $1.25 Billion as Institutional Buys Outpace Retail Exodus

XRP Faces Potential Challenges as ETF Inflows Outpace Broader Market Trends

XRP has defied broader market headwinds in recent weeks, with inflows into XRP-focused ETFs continuing to rise while Bitcoin and Ethereum ETFs see significant outflows. Institutional interest in the cross-border payment token remains strong, even as retail and some long-term holders appear to be scaling back their positions. This divergence in sentiment has raised questions about whether XRP is nearing a potential breakdown before the end of 2025.

Data from SoSoValue and other on-chain analytics platforms show that XRP ETF inflows have now reached $1.25 billion, with consistent daily inflows pushing assets under management higher. In contrast, Bitcoin and Ethereum ETFs have seen cumulative outflows of hundreds of millions of dollars over the same period. The growing institutional appetite for XRP is being driven by its unique utility in cross-border payments and regulatory clarity following the resolution of Ripple's long-standing legal battle with the U.S. SEC.

Analysts are closely watching whether the recent inflow strength can translate into a more sustained price recovery for XRP. Despite ETF-driven support, the token has struggled to break above key moving averages, and on-chain metrics such as the Chaikin Money Flow and Capital Flow Index remain bearish. These indicators suggest that retail and 2-3 year holders are selling while institutional accumulation continues. If XRP fails to defend the $1.81 level, it could trigger a more significant breakdown.

Market Divergence and Investor Sentiment

The contrast between XRP and Bitcoin, Ethereum is not just limited to ETF flows. On-chain data reveals that XRP holders are showing a mix of selling and accumulation behavior. Short-term holders-often retail investors-have reduced their share of the total supply by over 60% in recent weeks, while long-term holders have significantly curtailed their selling activity. This shift indicates that weaker hands are exiting the market, while stronger, more strategic investors are absorbing supply.

The bearish technical setup is also worth noting. XRP has remained trapped within a descending triangle pattern, with the price unable to reclaim the $1.90 level after a key breakdown in late December. The failure to break out above this range has left the token vulnerable to further downward pressure. The Chaikin Money Flow indicator remains negative and trending lower, suggesting that capital inflows are slowing and that supply may soon outpace demand.

Institutional Confidence and ETF Growth

Despite the bearish on-chain signals, institutional confidence in XRP remains high. Franklin Templeton's XRP ETF recently crossed a key milestone, holding 101.55 million XRP tokens valued at $192.7 million. This marks the first time the fund has exceeded 100 million XRP in holdings and reflects sustained accumulation from regulated capital. The fund's steady growth since its launch in November underscores the appeal of XRP as a regulated, compliance-ready investment vehicle for institutional investors.

Other major players are also contributing to the ETF inflow trend. Grayscale, VanEck, and 21Shares all operate XRP ETFs that continue to draw capital. These products offer investors exposure to XRP without the need for direct custody, reducing operational and compliance risks. The growing adoption of these ETFs has positioned XRP as a more accessible and legitimate asset class for mainstream institutional investors.

Risks to the Outlook

Even with strong ETF inflows, XRP is not without its challenges. Short-term momentum remains fragile, with price action hovering near key support levels. A close below $1.80 could trigger a cascade of selling and further pressure on the price. Additionally, the broader macroeconomic environment remains uncertain, with investors seeking safer assets like gold amid rising volatility and regulatory uncertainty.

Long-term holders are also a point of concern. While their selling activity has decreased, it has not stopped entirely. If these holders choose to offload more supply in the near future, it could create additional downward pressure on XRP. Analysts are watching closely for signs of increased distribution among these groups, particularly as the token approaches critical price levels.

What This Means for Investors

For investors, the current XRP landscape presents a mix of opportunity and risk. On one hand, the growing institutional demand and ETF inflows suggest that XRP could remain a key player in the crypto space, particularly as it continues to gain adoption in cross-border payment systems. On the other hand, the bearish technical setup and weak retail participation highlight the potential for further declines if the price fails to break out of its current range.

Investors are advised to monitor key price levels, particularly $1.81 and $1.90, as these will determine whether the current consolidation trend will lead to a breakout or a breakdown. For now, the balance of power appears to be shifting toward institutional buyers, but retail and long-term holders could still play a significant role in shaping the token's trajectory in the coming weeks.