XRP News Today: XRP ETFs Surge Past $1.2B Despite 45% Price Drop

XRP ETF Inflows and Market Dynamics

XRP spot exchange-traded funds have surged in popularity, with total assets surpassing $1.2 billion as of December 16, 2025. Despite a nearly 45% decline in the XRP token price from its July 2025 peak, institutional demand remains strong, as highlighted by 30 consecutive days of net inflows since the ETFs' November 13 launch. This trend reflects growing confidence in XRP's utility, particularly in cross-border payments, and marks the fastest adoption rate since Ethereum ETFs debuted.

The inflows have been consistent, with daily net inflows reaching up to $10.89 million on December 15, pushing total assets under management past the $1 billion threshold within a month. This has been driven by major providers such as Grayscale, Bitwise, and Franklin Templeton, which together account for over $800 million of the ETF's assets. Notably, XRP ETFs have outperformed both Bitcoin and Ethereum in the speed of reaching $1 billion in assets, a trend that underscores XRP's appeal among institutional investors.

The price of XRP has traded around $1.85 recently, but this has not deterred inflows into ETFs. The divergence between the token's price performance and ETF demand has raised questions about how institutional participation is reshaping market dynamics. Some analysts suggest that ETFs are acting as a buffer by absorbing supply, even as spot prices remain under pressure from broader market conditions.

Why the Standoff Happens Between ETF Demand and Spot Price

XRP ETF inflows have created a unique dynamic where institutional demand appears to be stabilizing the asset. Despite a 20% decline in the price over 30 days, there have been zero net outflow days for the ETFs since their launch. This suggests that while retail investors may be selling off in response to the broader crypto downturn, institutional participants are buying for the long term. Canary Capital's XRP ETF alone has attracted $376.5 million in inflows, with Grayscale and Bitwise following closely behind.

The price divergence can also be attributed to hedging activities by authorized participants. When an ETF is created or redeemed, market makers hedge their positions by shorting XRP derivatives or selling in spot markets, which can offset the upward pressure from ETF inflows. This explains why the spot price has not responded as strongly as one might expect to the influx of capital.

The mechanics of ETFs also play a role in this disconnect. Inflows can take days to settle, and during that period, high-frequency traders and derivatives players often front-run the flows, leading to price volatility that may reverse after the actual capital arrives. This lag means that ETF inflows do not always result in immediate price support, even as they reflect strong institutional conviction.

What Analysts Are Watching

Market observers are closely monitoring the weekly RSI indicator for XRP, which has fallen to 33, indicating the token is approaching oversold territory. Historically, strong bounces have occurred at this level when crypto sentiment balances, making this a potential inflection point for XRP. Analysts are watching whether the ETF inflows can provide enough support to trigger a reversal or if broader macroeconomic factors will continue to weigh on the asset.

The 30-day inflow streak is another key focus for experts. This kind of consistency is rare in newly launched crypto ETFs, and it suggests that XRP is being treated as a distinct asset class by institutional investors. Unlike Bitcoin and Ethereum ETFs, which have experienced intermittent outflows due to macroeconomic uncertainty, XRP ETFs are showing more resilience. This divergence may indicate that XRP is being valued more for its utility in payments than as a speculative asset tied to crypto market cycles.

Institutional demand is also being driven by the structural advantages of XRP ETFs. These products are built on standard brokerage rails, making compliance checks and position reporting easier for institutional committees. The wrapper also minimizes operational steps compared to direct token custody, making it an attractive option for retirement accounts and automated strategies that are less sensitive to short-term price swings.

Risks to the Outlook

Despite the strong ETF inflows, the XRP price continues to trade below key psychological levels, such as $2.00. The broader crypto market has also been under pressure, with Bitcoin and Ethereum experiencing similar declines. This has led to a rise in forced selling by leveraged funds and hedge funds that were long XRP derivatives before the ETF launch, which has overwhelmed any structural bid from ETF inflows. On-chain data further complicates the outlook. Exchange balances for XRP have fallen by 45% over two months, suggesting that supply is tightening as tokens move into private wallets and custody. However, this does not necessarily lead to immediate price appreciation. Historical patterns show that supply tightening often precedes price rallies by weeks or even months.

The future of XRP will also depend on macroeconomic conditions and broader sentiment in the crypto market. While ETF inflows provide a floor for institutional buying, they are not a guarantee of short-term price stability. If the broader risk asset rally resumes, XRP may benefit from a broader market rebound. However, if macroeconomic conditions remain weak, ETF inflows alone may not be enough to reverse the current downtrend. This scenario is currently under observation.