XRP absorbs $716 million! Institutions quietly buying; ETF sees 16 consecutive days of net inflow

Last week, the cryptocurrency market witnessed a rare phenomenon: capital inflows into XRP-related investment products surpassed the combined total for Ethereum and Solana. According to CoinShares data, XRP exchange-traded products (ETPs) raised $245 million in a single week, while SoSo Value shows that the XRP ETF has achieved 16 consecutive days of positive inflows, with total assets soaring to $935 million.

16 Consecutive Days of Positive Inflows Reveal Institutional Confidence

(Source: CoinShares)

According to SoSo Value data, despite recent market volatility, the XRP ETF has achieved 16 consecutive days of positive capital inflows. Such sustained inflows are extremely rare in the current market environment, indicating that institutional investors’ confidence in XRP has not been shaken by short-term price fluctuations. The total assets held by XRP-related ETFs have now surged to $935 million, representing an increase of more than 30% in just a few weeks.

Even more noteworthy is the weekly inflow data. The CoinShares report shows that XRP exchange-traded products, including over-the-counter funds, raised $245 million last week. Not only is this a record weekly inflow for XRP ETPs, but it is also 7 times the combined inflows for Ethereum and Solana ETPs ($35 million) during the same period. This stark contrast reveals a significant shift in institutional capital allocation preferences.

Compared to Bitcoin and Ethereum ETFs, the capital inflow pattern for XRP ETFs is more stable. Although Bitcoin ETFs have a larger total scale, their capital flows are highly volatile with frequent large outflows. Since launch, Ethereum ETFs have performed mediocrely, with multiple instances of net outflows. In contrast, the consecutive positive inflows into XRP ETFs show that institutional investors’ allocations are based on long-term assessments rather than short-term speculation.

This sustained institutional buying forms structural support for the price of XRP. The ETF mechanism dictates that when capital flows in, issuers must purchase a corresponding amount of XRP on the market to support the issuance of ETF shares. Sixteen consecutive days of positive inflows indicate persistent buying from ETFs in the market. Unlike short-term retail trading, this is allocation-driven capital aimed at long-term holding.

Three Core Reasons Institutions Favor XRP

The launch of Ripple USD (RLUSD) is a key catalyst for institutional favor toward XRP. This dollar stablecoin, officially issued by Ripple and deeply integrated with XRP, provides a comprehensive solution for cross-border payments and corporate treasury management. Within just a few weeks of launch, RLUSD issuance has exceeded hundreds of millions of dollars, indicating rapidly growing enterprise adoption of the Ripple ecosystem.

Ripple Prime is a liquidity solution specifically designed for institutional clients. Through this platform, banks and enterprises can instantly access XRP liquidity for cross-border settlements, significantly reducing the time and cost compared to the traditional SWIFT system. Several major financial institutions have begun testing Ripple Prime, and once it is fully commercialized, it will create sustained real demand for XRP.

Why Are Institutions Choosing XRP Now?

Enhanced Regulatory Certainty: The legal victory over the US Securities and Exchange Commission (SEC) has completely removed regulatory uncertainty. The court ruled that XRP is not a security under certain circumstances, providing institutional investors with a clear compliance framework.

Rapid Ecosystem Expansion: The launch of the Ripple USD (RLUSD) stablecoin and Ripple Prime institutional-grade products has transformed XRP from a simple cross-border payment token into a comprehensive enterprise-level financial infrastructure.

Valuation Gap Effect: Despite major breakthroughs in technology and applications, XRP’s market capitalization remains at a historical low relative to Bitcoin and Ethereum, presenting significant upside potential in the eyes of institutional investors.

Technical Analysis: $2 Support and $3 Target

(Source: Trading View)

On December 10, XRP was trading at $2.09, with trading volume declining, which typically suggests weakening selling pressure. The Relative Strength Index (RSI) shows that the price has entered a consolidation phase ahead of tomorrow’s FOMC meeting. XRP is currently testing the key $2 support level, which has held multiple times in recent weeks, indicating significant buying interest at this price.

The FOMC (Federal Open Market Committee) meeting is likely to set the tone for the market for the remainder of the month. If the price breaks above $2.20 following the FOMC meeting, it would effectively reverse the downtrend for XRP and could first reach $2.50. If the rally continues, a further push toward $3 is possible. The $3 level was a major psychological barrier during XRP’s 2018 bull market peak, and breaking above it would open up new upside potential.

The optimistic scenario is based on three premises: the FOMC maintains a dovish stance with no rate hike, the trend of capital inflows into XRP ETFs continues, and Ripple ecosystem applications are deployed at an accelerated pace. If these conditions are met simultaneously, XRP could break above $3 in the coming weeks and aim for even higher targets.

However, risks remain. If the price falls below the $2 support level, a larger pullback could occur, at least down to $1.65. This level was the starting point of the previous rebound, and losing it could trigger technical selling. Additionally, if the FOMC meeting delivers a hawkish signal or rate hike expectations rise, it could trigger a market-wide correction, and XRP would likely not be immune.