XRP News Today: XRP ETFs Surge Past $1.25 Billion as Institutional Demand Defies Crypto Selloff

XRP-based exchange-traded funds (ETFs) have attracted over $1.25 billion in net assets by late December 2025, despite the token's price remaining muted near $1.86. The ETF inflows have been consistent, with recent sessions adding $8.19 million to total holdings, signaling strong institutional demand for structured exposure to the asset according to Coindesk. This institutional interest has come amid broader crypto market volatility, with Bitcoin and Ethereum ETFs experiencing outflows, while XRP ETFs continue to draw capital.

The XRP ETFs began trading in mid-November and quickly amassed over $1.1 billion in inflows, with no weekly outflows recorded during their initial six-week run. By year-end, the products had crossed $1.25 billion in net assets, making XRP the fastest cryptocurrency to reach the $1 billion ETF milestone since Ethereum's ETF launch according to Bitcoin News. The success of the XRP ETFs is attributed to improved regulatory clarity, diversified issuer participation, and strong demand from institutional investors.

Regulatory developments have played a key role in supporting XRP's institutional adoption. Ripple secured a conditional national trust bank charter from the U.S. Office of the Comptroller of the Currency (OCC), allowing the company to establish the Ripple National Trust Bank (RNTB). This regulatory milestone enabled Ripple to manage its USD-backed stablecoin, RLUSD, under federal supervision and contributed to XRP's stability around the $2.00 level according to financial markets reporting.

The new charter is seen as a blueprint for other crypto firms seeking integration into the U.S. financial system.

How Markets Reacted

The XRP ETFs have performed strongly in the face of broader market uncertainty. While Bitcoin and Ethereum ETFs saw significant outflows in late December, XRP ETFs remained resilient, attracting steady institutional capital. In contrast to BTC and ETH, which faced outflows of $158 million and $76 million, respectively, XRP ETFs continued to add inflows according to FXStreet. This trend highlights XRP's unique position as a regulated asset with growing utility in cross-border payments and institutional-grade DeFi.

Price action for XRP has remained choppy, despite ETF inflows. The token has been trading in a tight range between $1.85 and $1.91, with strong selling pressure near $1.90 and consistent support near $1.86. This pattern suggests that short-term traders are still treating $1.90 as a sell zone, while ETF flows provide a stabilizing force. Analysts note that a breakout above $1.90 could lead to a move toward $1.95–$2.00, while a breakdown below $1.86 could test support at $1.77–$1.80 according to Coindesk.

What Analysts Are Watching

Market participants are closely monitoring XRP's ability to break out of its current range and whether ETF inflows can translate into stronger price performance. The token's price action has remained detached from broader market trends, with XRP consolidating above $1.86 despite Bitcoin's failed attempt to break above $90,000. Technical indicators such as the RSI and MACD suggest a bearish-leaning trend, with the RSI at 41 and the MACD showing a slight bullish bias. A sustained close above the 50-day EMA at $2.13 could signal a broader recovery according to FXStreet.

Institutional investors are also tracking Ripple's plans to roll out native lending on the XRP Ledger through XRPL Version 3.0.0 in 2026. This move will expand XRP's utility beyond payments into institutional-grade DeFi, allowing market makers to borrow XRP or RLUSD and holders to earn yield by lending to credit facilities. Ripple engineer Edward Hennis stated that the amendments are expected to enter validator voting in late January 2026 according to Benzinga.

Risks to the Outlook

Despite the positive developments, risks remain for XRP and its ETFs. The "conditional" nature of Ripple's OCC charter requires the company to adhere to stringent capital and AML requirements, which could increase operational costs and limit growth. Additionally, XRP's price has yet to break decisively above key technical levels, and short-term traders continue to sell into rallies, which may limit upward momentum.

Broader macroeconomic factors also pose a risk. If Bitcoin's price struggles continue or if broader crypto markets experience a deeper correction, XRP could face renewed downward pressure. However, the structural support from ETF inflows and Ripple's regulatory progress provide a buffer against extreme volatility.

What This Means for Investors

For institutional investors, XRP ETFs represent a compelling opportunity to gain exposure to a regulated digital asset with real-world utility. The growing adoption of structured investment vehicles in crypto reflects a broader shift in institutional strategies, where custody and compliance risks are minimized through ETF structures. As XRP ETF assets continue to grow, the market may see further product innovation and expanded offerings.

Retail investors should also pay attention to XRP's evolving role in the crypto ecosystem. The token's integration into institutional-grade DeFi and its use as a bridge currency through the Ripple National Trust Bank positions it as a unique asset in the broader crypto market. While price volatility remains a concern, the structural support from ETFs and regulatory clarity could enhance long-term stability and appeal.