The spot XRP ETF index fund registered net inflows for a continuous month since its launch on November 13, which is a contrast to Bitcoin and Ethereum ETFs that experienced outflows of billions of USD during the same period.
This event marks a significant turning point for XRP, which had been excluded from mainstream investment products for several years due to regulatory uncertainties related to Ripple's case against the U.S. Securities and Exchange Commission. However, as spot ETFs help lift this restriction, institutional investments are flowing into this asset faster than bullish investors anticipated.
A clear distinction compared to BTC and ETH.
According to data from SoSoValue, the spot XRP ETF has received new funding on every trading day since its launch, resulting in a cumulative net inflow of approximately 990.9 million USD as of December 12, with total net asset value across all five products soaring to around 1.18 billion USD, with no day experiencing net redemptions.
This consistency creates a clear distinction in a market where even large crypto ETFs struggle to maintain ongoing momentum. During the same 30-day period, the U.S. spot Bitcoin ETF experienced net outflows of approximately 3.39 billion USD, including a single-day withdrawal of around 903 million USD on November 20, while the Ethereum ETF showed a similar trend with net outflows of about 1.26 billion USD.
The differing trends were most pronounced on December 1, when the XRP ETF attracted 89.65 million USD, while the Bitcoin ETF only saw inflows of 8.48 million USD, which is just about one-tenth of XRP, while the Ethereum ETF experienced net outflows exceeding 79 million USD.
Trading in December further highlights this disparity, with the spot Bitcoin ETF recording outflows for 4 days compared to 8 positive days, while the Ethereum ETF shows similar volatility with 5 negative days and 7 positive days until December 12. However, the XRP ETF continues to see positive inflows.
The second to reach 1 billion USD the fastest
Brad Garlinghouse, CEO of Ripple, stated that XRP has become one of the fastest-growing spot crypto ETFs to reach 1 billion USD in assets under management in the U.S., second only to Ethereum.
There is pent-up buying power for regulated crypto products, Garlinghouse said, emphasizing Vanguard's recent decision to make crypto ETFs accessible through retirement and traditional investment accounts, thus making crypto available to millions who do not need to be technology experts.
Garlinghouse also emphasized that longevity, stability, and the strength of the community are crucial factors for new crypto investors outside the network.
CME expands derivative infrastructure
CME Group announced the launch of Spot-Quoted XRP and SOL futures on December 15, expanding access to XRP for more financial institutions.
We are seeing strong demand for our Spot-Quoted Bitcoin and Ether futures, with trading volumes exceeding 1.3 million contracts since their launch in June, and we are pleased to have added XRP and SOL to our offerings, said Giovanni Vicioso, Head of Global Cryptocurrency Products at CME Group.
The existing Spot-Quoted Bitcoin and Ether futures have grown significantly, with an average daily trading volume of 35,300 contracts in December and a peak trading day of 60,700 contracts combined on November 24.
Prices are still lagging as accumulation signals begin to become clear.
Market analysts suggest that the continuous inflow pattern indicates that the XRP ETF is being used more as a structural allocation rather than for short-term strategic trading.
This is only 5 spot ETFs; there are still no BlackRock or other 10-15 ETFs yet, but they are coming, one analyst said, predicting that if inflows continue at around 200 million USD per week, cumulative inflows could exceed 10 billion USD by 2026.
Despite strong inflows into the ETF, XRP's price has stagnated, with the coin down nearly 15% in the past month and trading at 1.89 USD at the time of reporting.
The disconnect between inflows and prices reflects the ETF market mechanics, where the creation and redemption processes for ETFs must go through a complex arbitrage process, which may cause price impacts to lag, and liquidity providers hedging their positions may also dilute the immediate impact of inflows.
