A Quiet Institutional Milestone
U.S. spot XRP exchange-traded funds have crossed the $1 billion AUM threshold in less than four weeks, marking one of the fastest accumulation phases ever recorded for an altcoin ETF. As of mid-December 2025, combined assets under management sit between $1.18–$1.23 billion, with flows remaining consistently positive. The speed of capital formation places XRP alongside early Ethereum ETF adoption and signals a structural shift in how institutions are accessing the asset.
Ripple CEO Brad Garlinghouse publicly acknowledged the milestone, framing it as confirmation of demand that remained sidelined during years of regulatory uncertainty. What makes this phase notable is the disconnect between capital inflows and price action: despite strong ETF demand, XRP continues to trade near the $2.00 range, suggesting accumulation rather than speculative repricing.
Market Context: Liquidity Without Momentum
XRP currently trades around $2.00, carrying a market capitalization close to $121 billion, firmly positioning it among the largest digital assets by size. Daily spot volume near $1.7 billion reflects sustained liquidity and active participation, even as directional momentum remains subdued.
ETF approvals have elevated XRP’s visibility, particularly among allocators prioritizing regulatory clarity. However, broader market consolidation and cautious macro positioning have muted immediate upside reactions, keeping price action compressed despite improving demand signals.
ETF Flows: Evidence of Institutional Accumulation
Since mid-November, spot XRP ETFs have absorbed approximately $990–$995 million in net inflows, with multiple consecutive weeks of positive flows — a pattern typically associated with institutional positioning rather than retail speculation.
The issuer landscape is led by Canary Capital, often holding more than half of total ETF AUM, followed by Grayscale and Bitwise, alongside Franklin Templeton, 21Shares, REX-Osprey, and others. Collectively, these funds now custody an estimated 550–670 million XRP, gradually reducing available liquid supply in the market.
At sustained inflow rates of $20–$50 million per day, projections suggest ETF AUM could expand toward $5–$10 billion by late 2026, introducing a durable, long-term demand layer beneath XRP’s market structure.
Understanding the Price–Flow Disconnect
ETF accumulation often operates quietly, absorbing spot supply while derivatives markets remain dominated by leverage, hedging activity, and short-term positioning. In XRP’s case, macro uncertainty and broader crypto consolidation are offsetting ETF demand in the near term.
This dynamic is not unusual. Early phases of Bitcoin and Ethereum spot ETFs displayed similar divergences, where capital inflows preceded price repricing by several months. Historically, such conditions tend to resolve through delayed structural moves rather than immediate breakouts.
Technical Structure: Compression Over Breakdown
From a technical perspective, XRP remains neutral to mildly bearish in the short term:
• Price continues to trade within a descending channel
• The 50-day moving average is approaching a potential cross below the 200-day
• RSI holds in the mid-40s, reflecting weak momentum
• MACD remains negative, signaling trend hesitation rather than capitulation
Key levels to monitor:
• Support: $1.96–$1.97, followed by $1.77–$1.80
• Resistance: $2.04, then $2.08–$2.10 for structural confirmation
Positioning Implications: Structure Over Speed
ETF flow behavior points to accumulation, not distribution, reinforcing XRP’s longer-term valuation thesis even as short-term price action remains range-bound. Tactical approaches favor disciplined range strategies and capital preservation, while longer-horizon positioning increasingly focuses on structural demand, supply absorption, and regulatory clarity rather than immediate momentum signals.
A Structural Shift in Progress
Crossing the $1 billion AUM mark at record speed underscores XRP’s transition into a regulated, institutionally accessible asset class. The absence of immediate price appreciation should be viewed as a function of accumulation dynamics, not weakness. As ETF flows persist and circulating supply tightens, their influence is more likely to materialize over time — gradually reshaping XRP’s market structure into 2026 and beyond.
