Morgan Stanley Buying XRP ETFs But Still Avoiding a Spot XRP ETF?

Banking giant with an AUM of $7.4 trillion, Morgan Stanley has quietly disclosed its XRP holding-linked exchange-traded funds, marking. While the holdings are relatively small, the disclosure is drawing attention because it comes as institutional interest in XRP products continues to grow and U.S.-listed XRP ETFs attract fresh investor inflows.

Morgan Stanley Reports First XRP-Linked ETF Holdings

According to its latest Q1 2026 13F filing with the U.S. Securities and Exchange Commission, Morgan Stanley revealed holdings in two XRP-focused ETFs.

The investment bank reported owning 1,700 shares of the Volatility Shares XRP ETF and 100 shares of the Grayscale XRP ETF (GXRP).

Comparing it with Morgan Stanley’s overall portfolio and its larger positions in Bitcoin and Ethereum investment products, the XRP allocation remains small. However, the filing shows that XRP is increasingly becoming part of institutional crypto portfolios. The development is particularly important given Morgan Stanley’s position as one of the world’s largest financial institutions

XRP ETFs Attract $31.8 Million in Weekly Inflows

The disclosure comes during a period of growing institutional demand for XRP investment products.

Last week alone, XRP ETFs recorded approximately $31.8 million in inflows. On May 28, XRP ETFs attracted another $1.77 million in net inflows, while Bitcoin and Ethereum ETFs experienced outflows during the same period.

Bitwise’s XRP ETF alone accounted for the entire $1.77 million daily inflow, showing continued investor interest despite overall uncertainty. Till now, the XRP ETF has recorded a total inflow of $1.41 billion.

Why Hasn’t Morgan Stanley Filed for an XRP ETF?

Despite adding exposure to XRP-linked ETFs, Morgan Stanley has yet to file for a spot XRP ETF of its own. The move stands out because the bank has previously recognized Ripple’s payment network as a strong alternative to the traditional SWIFT system for cross-border transactions.

While that view has fueled speculation that institutional interest in XRP could continue growing, Morgan Stanley is currently taking a more cautious approach. Rather than holding XRP directly on its balance sheet, the bank offers clients exposure through regulated investment products that track XRP’s price without requiring investors to manage wallets or private keys.

For now, Morgan Stanley appears focused on crypto products tied to more established institutional markets, including Bitcoin and Solana, while waiting for greater regulatory clarity around XRP before expanding further

What Could Happen Next for XRP?

As of now, XRP is trading near $1.30, up roughly 1% over the past 24 hours, although trading volume declined 13%.

The growing number of institutions reporting XRP ETF exposure suggests Wall Street’s interest in Ripple-linked products is gradually increasing.