Key Insights:
XRP ETFs have surpassed $60 million in assets under management despite persistent declines in the token’s spot market price.
Institutional purchases through ETFs often follow delayed structures, separating fund inflows from immediate market price action.
XRP wallet activity has increased, indicating accumulation by holders even as the token tests major support levels on technical charts.
XRP-linked exchange-traded funds (ETFs) have crossed $60 million in assets under management as of December 17, according to market data. The asset growth comes amid a continued decline in XRP’s spot price, which has experienced downward pressure over several months. The contrast between rising ETF investments and falling token prices has drawn attention from analysts and market participants.
While XRP's spot price remains under pressure, institutional interest appears to be growing steadily. Analysts attribute this trend to ETF structures that delay immediate impact on the spot market. ETF shares are traded during regular hours, but fund managers typically calculate flows after market close and purchase underlying assets like XRP later. This timing reduces the likelihood of real-time price spikes tied directly to inflows.
Delayed Impact Linked to ETF Operations
Chad Steingraber, a market observer, noted that ETFs operate with lagging purchase mechanisms. This can explain why capital inflows may not immediately affect XRP’s price. Additionally, institutional investments often follow prolonged internal review processes, and staged capital deployment may also contribute to the delayed price response in the market.
Technical indicators have signaled a sustained downtrend in XRP’s price since mid-year. Analysts monitoring the token’s longer-term charts report repeated tests of key support levels. Should these levels fail to hold, focus could shift to lower price bands. Despite the ETF growth, XRP's market behavior continues to reflect persistent selling pressure.
Wallet Growth Suggests Holder Accumulation
Recent data from the XRP Ledger shows a notable increase in non-empty wallets. On-chain analytics indicate some market participants are accumulating XRP during its current decline. This behavior contrasts with the broader selling trend, suggesting varying strategies among investor segments.
Although XRP ETFs have crossed a $60 million milestone, the figure remains relatively small in comparison to larger cryptocurrency-linked funds. Managers of these ETFs may adopt strategies like hedging or phased purchasing, which further delay noticeable market impact. Analysts continue to track whether ongoing ETF activity will eventually translate into spot market support.
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