XRP-linked exchange-traded funds crossed $60 million in assets under management on December 17. The milestone comes even as XRP’s spot price continues to weaken, puzzling investors who expected ETF inflows to support prices. XRP was trading around $1.79, down more than 4% on the day, at the time of writing.
One expert said that the ETF growth shows longer-term institutional processes, rather than short-term speculative demand.
Institutional investors typically conduct extensive due diligence before allocating capital, including reviews of market behaviour, risk metrics and historical performance. Final approvals to buy and hold assets can take months or, in some cases, years, particularly among conservative funds.
While the pace of crypto adoption has accelerated, institutional decision-making remains methodical.
Expert Chad Steingraber said investor confusion largely stems from how ETFs operate.
“ETFs are not trading XRP directly,” he said, explaining that funds trade ETF shares, similar to equities, during market hours. Fund managers then calculate net inflows after the trading session ends and purchase XRP later to back the fund.
This structure can delay buying activity in the underlying asset, meaning ETF inflows do not immediately translate into higher spot prices, contributing to the current disconnect between ETF growth and market performance.
Technical analysts say XRP continues to show signs of weakness on higher time frames. The token has been trending lower for several months, with warnings of a broader pullback since mid-year.
While short-term rebounds remain possible, they have so far failed to alter the broader bearish structure.
XRP is testing a long-standing support zone between $1.80 and $1.90, which has held multiple times over the past year.
A sustained move below $1.80 would weaken the technical outlook, analysts said. Below that level, attention shifts to $1.60, followed by a broader support range between $1.30 and $1.40 if selling pressure intensifies.
ETF inflows don’t instantly boost XRP’s price because managers buy XRP after trading closes, creating a delay between demand and spot market impact.
Over time, yes. Institutions move slowly, but their capital is typically long-term and can support future price stability.
Growing ETF assets suggest strong institutional adoption, which is a longer-term bullish indicator. However, short-term price remains under technical pressure, indicating a distinction between immediate trading and strategic investment.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
The Federal Reserve is expected to continue with its interest rate cut in 2026, amid…
Crypto markets entered the week expecting heightened volatility ahead of key macro triggers, including U.S.…
Bitcoin, Ethereum and XRP prices moved higher on Thursday after the US Supreme Court delayed…
Ethereum’s accumulation cost has increased and LTHs are concentrated around $2.7K–$2.8K price range. This is…
Cardano founder Charles Hoskinson said he is stepping away from social media, raising questions among…
Bitcoin’s price has slipped from recent highs, breaking below key short-term levels and triggering renewed…
