XRP Spot ETF Attracts $1 Billion in Assets as Institutional Skepticism Lingers

XRP spot exchange-traded funds have attracted over $1 billion in assets under management in early 2026, signaling growing institutional interest. The surge comes despite a recent regulatory setback as WisdomTree pulled its XRP ETF filing using Rule 477 to avoid a public SEC rejection. Meanwhile, inflows into XRP ETFs continued to rise, with Franklin Templeton's XRPZ alone seeing $7.35 million in inflows on January 6.

XRP's price, however, has shown signs of volatility. On January 9, XRP fell to $2.25, a 4.9% drop in 24 hours, despite the record inflows. Analysts attribute this to a complex relationship between ETF accumulation and spot price dynamics. Over 750 million XRP tokens are now held by ETFs, but much of this represents existing institutional holdings transferred into the new wrapper structure rather than fresh buying pressure.

The ETF inflows have outpaced those of Bitcoin and Ethereum. In early 2026, XRP ETFs recorded $19.12 million in net inflows on January 6 alone, while Bitcoin ETFs saw outflows. This trend has continued with cumulative inflows reaching $1.25 billion.

Why Did WisdomTree Withdraw Its ETF?

WisdomTree used Rule 477 to withdraw its XRP ETF filing, avoiding a potential public SEC rejection. This strategic move allows the firm to reset its regulatory timeline and avoid creating a negative precedent. The firm noted that it is "not proceeding at this time with the offering covered by the Registration Statement".

This decision aligns with broader institutional caution around XRP. BlackRock, for instance, has not filed for an XRP ETF, focusing instead on Bitcoin and Ethereum.

How Are Markets Responding to ETF Inflows?

Despite the ETF inflows, XRP's price remains under pressure. On January 9, XRP traded at $2.25, having dropped 4.9% in the last 24 hours. The cumulative net inflow for XRP ETFs sits at $1.25 billion, but the asset's price action suggests the market is still searching for equilibrium.

The inflows into XRP ETFs have created a unique dynamic. Unlike traditional equity ETFs, much of the ETF accumulation represents institutional rebalancing rather than fresh capital deployment. This has limited the immediate price impact, though it does suggest a growing institutional presence.

What Are Analysts Watching Next?

Analysts are closely watching whether the current ETF inflows will translate into sustained price appreciation. Standard Chartered has set a bold price target of $8 for XRP by the end of 2026. Geoff Kendrick, the bank's Head of Digital Assets Research, noted that improving U.S. regulatory clarity has made it easier for institutions to take exposure to XRP.

Technical indicators and sentiment remain mixed. The RSI for XRP is near 48, a neutral reading, while some analysts warn of a potential double top pattern that could signal a price correction.

The futures market also shows signs of cautious positioning. Open interest in XRP derivatives has cooled from a peak of $4.55 billion to around $4.15–4.26 billion. This suggests traders are closing positions rather than opening new ones.

The market is also watching for potential catalysts. If BlackRock files an XRP ETF, it could lend further credibility to the asset and attract conservative institutional investors. Additionally, the Federal Reserve's potential rate cuts in 2026 could lower the opportunity cost of investing in risk assets like XRP.

While XRP remains a top performer among major cryptocurrencies in early 2026, the path to sustained price appreciation is still uncertain. The current mix of ETF inflows, regulatory clarity, and market skepticism creates a complex backdrop for investors to navigate.