
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.
Ripple has commenced buying back $750 million of its equity shares, raising the company’s valuation…
Bitcoin (BTC) has been consistently trading below $75,000 for the past 35 days, after falling…
Goldman Sachs has emerged as the largest institutional holder of spot XRP exchange-traded fund shares,…
The Bitcoin price is hovering near $69,926, but not everyone is convinced the worst is…
A new exchange-traded fund (ETF) linked to XRP—the Kurv XRP Enhanced Income ETF—is scheduled to…
The BNB price might be getting its groove back after a major decline from ATH…