XRP Shows Strong Momentum as ETF Inflows and Institutional Interest Grow

XRP has shown significant momentum as inflows into XRP-focused exchange-traded funds (ETFs) continue to rise. In the first week of 2026, XRP ETFs recorded over $1.16 billion in inflows since launch. This trend has outpaced inflows into Solana-related ETFs, which saw only $13 million in the same period according to data.

Investors are increasingly allocating capital into XRP-based products as they seek exposure to digital assets beyond the dominant Bitcoin and Ethereum. Inflows into XRP ETFs have occurred over 30 consecutive days, with the total assets under management reaching $1.27 billion.

At the same time, Bitcoin and Ethereum ETFs have seen outflows, with $782 million and $102 million leaving those products, respectively, during the same period. This shift indicates a broader reallocation of capital rather than an overall exit from the crypto market as research shows.

Why Did This Happen?

The growing institutional interest in XRP ETFs reflects a change in investor behavior. XRP ETF inflows have accelerated in the past few months, coinciding with broader market uncertainty and regulatory developments. Analysts like Zach Rector have pointed to these trends as evidence of XRP becoming a preferred altcoin within the ETF structure.

XRP's ETF inflows are supported by a strong supply accumulation pattern. Approximately 745 million XRP is already held within ETF structures. If current inflow rates continue, the supply could surpass 1 billion XRP by early 2026.

How Did Markets React?

The price of XRP has responded to the growing institutional interest. On January 1, 2026, XRP surpassed $2 as ETF inflows and regulatory optimism fueled a bullish start to the year. This price movement followed a 30-day streak of net inflows into XRP ETFs.

Ripple's scheduled unlock of 1 billion XRP from escrow on January 1, 2026, also drew attention. While the unlock was a significant headline, the impact on the market was muted. Historically, Ripple locks and relocks a large portion of its monthly release, limiting the actual liquidity effect.

Exchange balances for XRP have continued to decline, indicating that holders are accumulating the token rather than selling. This trend supports the view that long-term demand for XRP remains strong.

What Are Analysts Watching Next?

Investors are now monitoring Ripple's potential initial public offering (IPO) in 2026. If Ripple goes public at a $50 billion valuation, it could represent the ninth-largest IPO of the year. Analysts suggest this could increase institutional interest in XRP and potentially drive the price up to a range of $8–$15.

However, Ripple executives have downplayed the urgency of an IPO. CEO Brad Garlinghouse has stated that an IPO is not a top priority and that the company is growing without the need for public capital.

Analysts are also watching social sentiment and market divergence. XRP is currently at an extreme fear level of 24 on the Fear & Greed Index. Historical patterns suggest that such levels often precede a bullish reversal.

The contrast between bearish retail sentiment and strong institutional inflows into XRP ETFs is a key point of interest. Institutional buyers have added around $1.3 billion in XRP over the past 50 days, while retail investors are in fear mode. This divergence suggests a potential reversal could occur in the coming weeks.