XRP ETFs Hit Big While Bitcoin and Ethereum Lag

XRP exchange-traded funds (ETFs) in the U.S. have crossed $1 billion in assets, driven by steady daily inflows since their launch in mid-November. Unlike bitcoin and ethereum ETFs, which have experienced occasional outflows, XRP ETFs have seen consistent investment.

Key Milestones

• Total Assets: As of December 12, XRP ETFs reached approximately $1.18 billion.
• New Investments: Around $975 million in new investments.
• Streak: 30 consecutive trading days of inflows starting November 13.

Market Context

The crypto market, along with other risky assets, has been struggling. Bitcoin and ethereum prices have declined, with other major cryptocurrencies following suit. Despite this, XRP ETFs have continued to attract investments.

Analyst Insights

Mati Greenspan, founder of Quantum Economics, noted that the growth of XRP ETFs reflects easier access to investment rather than a sudden improvement in XRP's fundamentals. The ETF structure is crucial for investors prioritizing compliance, security, and liquidity over short-term price movements.

Greenspan also highlighted that ETF inflows can remain positive even in a down market, as they often reflect long-term investment strategies rather than short-term trading decisions.

Institutional Interest

Asheesh Birla, CEO of Evernorth, explained that institutional investors are seeking regulated frameworks and clear benefits. The trend suggests that crypto ETFs may be entering a new phase where capital spreads beyond bitcoin and ethereum to include alternative assets packaged into regulated wrappers.

Contrast with Bitcoin and Ethereum ETFs

Unlike XRP ETFs, bitcoin and ethereum ETFs have shown inconsistent flow patterns due to macroeconomic factors and stock market volatility. XRP funds, however, have attracted smaller but more consistent investments, indicating a long-term investment strategy.