XRP Whales Add $3.6 Billion as Bullish Divergence Returns

XRP spot exchange-traded funds (ETFs) have recorded 30 consecutive days of net inflows as of December 2025. These funds have seen $1.16 billion in total inflows since launch, with the latest weekly flow reaching $15.55 million. The sustained inflows indicate growing confidence in XRP among both institutional and retail investors.

Meanwhile, XRP balances on exchanges have dropped to new lows. As of December 2025, exchange-held XRP stood at 1.6 billion tokens, down from 3.76 billion in October 2025. This decline aligns with historical lows last seen in August 2018, suggesting reduced sell pressure and increased accumulation.

Franklin Templeton's XRP ETF recently crossed 100 million XRP in holdings for the first time. The fund now holds 101.55 million XRP tokens, valued at $192.7 million. This milestone reinforces institutional participation in XRP and highlights growing demand for regulated exposure.

Why Did This Happen?

Crypto analyst Zach Rector attributes the inflows to a shift in capital within the crypto market. He noted that while Bitcoin and Ethereum ETFs faced outflows totaling $782 million and $102 million, respectively, XRP ETFs attracted $64 million in a single week. This divergence suggests a rotation into alternative crypto assets, particularly those with regulated investment vehicles.

Rector also pointed to the speed at which XRP ETFs have accumulated supply. Approximately 745 million XRP is already held in ETF structures, and based on current inflow trends, he expects this number to exceed 1 billion XRP by early 2026. This rapid accumulation reflects institutional confidence in the asset.

How Did Markets Respond?

Market participants have reacted positively to the growing ETF adoption. XRP's price has stabilized above key support levels, with bulls watching for a breakout from the $1.60–$1.84 demand zone. The asset has held above $1.78, which traders view as a critical level for further upside according to market analysis.

Roundhill Trust updated its XRP Covered Call Strategy ETF filing with the SEC on December 23, 2025. The amendment clarifies that the fund does not directly hold XRP but instead uses options strategies linked to XRP ETFs. This approach provides investors with exposure to XRP price movements without direct token ownership, broadening accessibility.

The ETF filing has been interpreted as a sign of growing institutional acceptance of XRP. While it does not signal an immediate launch of a spot XRP ETF, it confirms regulatory recognition of XRP as a viable underlying asset for structured products according to industry observers.

What Are Analysts Watching Next?

Analysts are closely monitoring XRP's supply dynamics. Exchange outflows have tightened liquidity, with ETFs playing a central role in removing XRP from short-term trading. As of December 2025, XRP's circulating supply on exchanges stood at 1.5 billion tokens. This reduction increases the likelihood of supply-driven price pressures if demand accelerates.

Regulatory developments also remain a key focus. Ripple's resolution of its SEC case in 2025 has cleared the path for XRP ETFs. This regulatory clarity has attracted major asset managers, including Franklin Templeton, and increased speculation about potential entries by firms like BlackRock.

Market observers are also watching for confirmation of BlackRock's rumored 2026 XRP ETF filing. While unconfirmed, the speculation has boosted sentiment and highlights the asset's growing institutional profile.

Investors should also track the performance of existing XRP ETFs. Franklin Templeton's fund has shown consistent inflows and asset growth, while Roundhill's Covered Call ETF provides an alternative structure for exposure according to recent reports. These developments indicate a maturing market with multiple investment strategies emerging.