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XRP News Update: Regulatory Transparency Drives XRP ETF Boom, $643 Million Invested During Initial Month

XRP News Update: Regulatory Transparency Drives XRP ETF Boom, $643 Million Invested During Initial Month

Bitget-RWA2025/11/29 11:50
By:Bitget-RWA

- XRP ETFs saw $643M net inflows in their first month, driven by regulatory clarity and institutional demand. - Grayscale, Franklin Templeton, and Bitwise led XRP accumulation, holding 0.5% of its market cap via ETFs. - XRP ETF inflows outpaced Solana and Dogecoin , with $243M peak daily inflows boosting market pressure. - Analysts highlight XRP's cross-border payment utility as a key differentiator from speculative altcoins. - Sustained inflows could push XRP toward $3 if ETF demand mirrors Bitcoin's 2024

XRP ETFs Attract Robust Institutional Investment in Debut Month

Institutional investors have shown strong interest in XRP exchange-traded funds (ETFs), with net inflows reaching $643.92 million during their inaugural month, according to SoSoValue. This impressive start positions XRP ETFs among the top-performing altcoin-based funds in 2025, fueled by clearer regulations, thoughtful product development, and increasing trust in XRP’s practical applications.

Currently, these funds manage $676.49 million in net assets, representing 0.5% of XRP’s total market value. Notably, inflows have remained positive for nine out of the last ten trading sessions. Leading asset managers such as Grayscale, Franklin Templeton, Bitwise, and Canary have collectively pushed ETF-held XRP above 0.5% of the circulating supply, indicating early institutional accumulation.

XRP ETF Institutional Inflows

Factors Fueling the Surge

  • Regulatory Clarity: The conclusion of XRP’s legal dispute with the U.S. Securities and Exchange Commission in mid-2025 has removed significant uncertainty, encouraging investment.
  • Macroeconomic Tailwinds: Favorable economic conditions have further supported the growth of these funds.
  • ETF Structure: The need for direct XRP purchases during ETF creation cycles has tightened supply and heightened market impact during periods of strong inflows.
  • Competitive Fees and Marketing: Issuers’ attractive fee models and promotional efforts have accelerated adoption, with daily inflows peaking at $243.05 million on November 14 and $164.04 million on November 24.

Market Performance and Comparisons

Despite XRP’s price volatility—trading near $2.23 on November 26, about 40% below its yearly peak—ETF demand has helped counteract broader weakness in the crypto market. The proportion of XRP’s market cap held by ETFs remains well below that of Ethereum (5.5%) and Bitcoin (6.54%), suggesting significant potential for further growth.

Meanwhile, Ripple’s RLUSD stablecoin has experienced a 56% increase in 30-day transaction volume, reaching $3.5 billion, which further highlights XRP’s importance in global payments infrastructure.

XRP Outpaces Other Altcoin ETFs

XRP’s $643 million in ETF inflows have far surpassed early results for Solana and other altcoins such as Dogecoin, HBAR, and Litecoin, which have seen limited institutional participation. Analysts point to XRP’s established role in cross-border payments as a key advantage, with many funds treating it as a utility asset rather than a speculative investment. The upcoming launch of 21Shares’ XRP ETF is expected to intensify competition and broaden adoption.

Outlook: Sustained Inflows Could Reshape the Market

Although XRP has recently traded below its 100-day exponential moving average and set lower lows, experts believe that continued ETF inflows could alter market dynamics. Should institutional demand persist into December, XRP could follow Bitcoin’s ETF-driven rally from 2024, with some forecasts suggesting the token might reach $3 as market volatility subsides and institutional involvement grows.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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