XRP News: ETF funds have been flowing in for 30 consecutive days, attracting $1.14 billion. Why does the XRP price remain weak?

As the US spot Bitcoin ETF continues to attract market attention, the spot XRP ETF is quietly reaching its own milestone. According to SoSoValue data, the US spot XRP ETF has experienced net capital inflows for 30 consecutive trading days, with total assets under management (AUM) surpassing $1.14 billion. Interestingly, this steady capital inflow contrasts sharply with XRP’s recent price weakness, a phenomenon often seen as a sign of smart institutional long-term positioning. This article will analyze capital flows, leading products, and interpret the potential implications of this divergence for XRP’s future trend.

Contrarian Capital Attraction: How XRP ETF Breaks Through $1.14 Billion

In the context of increased volatility in the cryptocurrency market, a certain asset class has shown remarkable resilience. The US spot XRP Exchange-Traded Fund (ETF) has performed strongly recently, continuously attracting capital inflows during price retracements, with AUM climbing to over $1.14 billion. In just the latest trading day, this category of products recorded nearly $19 million in net inflows, pushing the total net inflow of all XRP spot ETFs to a high of $1.03 billion. This data indicates that despite recent pressure on XRP’s market price, demand for regulated financial products holding XRP has not waned—in fact, it is steadily growing.

The persistence of this capital inflow trend is particularly noteworthy. Thirty consecutive days of net inflows create a clear record, signaling the market that goes beyond short-term price fluctuations: a significant portion of investors—likely institutions or high-net-worth clients—are leveraging market volatility to accumulate positions. Currently, XRP ETFs account for about 0.98% of XRP’s total market cap. While still a small proportion, their growth momentum and the “compliance-driven” intent they represent have an undeniable impact on XRP’s long-term liquidity structure.

From a macro perspective, the success of XRP ETFs is another important case of traditional finance channels embracing specific crypto assets, following Bitcoin and Ethereum ETFs. It reflects that even in the complex regulatory environment of the US, capital markets remain willing to open investment channels for crypto assets with clear practical use cases, such as cross-border payments. This “asymmetric demand”—where investment demand does not fully align with on-chain usage—created through ETF products is becoming a new variable influencing XRP’s price discovery mechanism.

Overview of main XRP ETF product capital flows

21Shares XRP ETF (TOXR)

  • Daily net inflow: $5.49 million
  • Total net inflow: $5.67 million (since launch)

Canary XRP ETF (XRPC)

  • Daily net inflow: $5.19 million
  • Total net inflow: approximately $382 million (one of the largest current products)

Grayscale GXRP & Bitwise XRP ETF

  • Performance: Both recorded positive capital flows
  • Contribution: Helped achieve a total daily trading volume of $53.16 million

Overall Market

  • Daily total net inflow: $18.99 million
  • Cumulative total net inflow: $1.03 billion
  • Total assets under management: $1.14 billion

The “Divergence” Between Price Weakness and Capital Inflows

A thought-provoking market phenomenon is unfolding in the XRP space: contrasting sharply with the enthusiastic ETF capital inflows is XRP’s recent weak spot price performance. As of December 18, XRP trades around $1.92, down about 4.5% over the week, with a monthly decline approaching 11.3%. Most XRP ETF products’ intraday prices also fell by 2% to 3%. This “price decline versus capital inflow” divergence is one of the most noteworthy signals in mature markets, often indicating a shift in market participant structure.

This divergence is typically interpreted as “accumulation” behavior. When short-term traders and retail investors panic-sell due to falling prices, long-term investors and institutions may see it as a good opportunity to buy assets at a discount. ETF as their primary entry tool directly reflects this process through capital flow data. Investors seem unshaken by daily volatility, instead focusing on XRP’s long-term narrative in cross-border payments, its relatively clear regulatory environment, and its growing ecosystem. This investment logic emphasizes fundamentals and long-term value rather than chasing short-term price momentum.

From a technical analysis perspective, XRP is currently in a critical zone. The $1.80 to $1.90 range has historically been an important support zone, while the $1.96 to $2.00 range has shifted from support to strong resistance. Price oscillations within this range provide a window for dollar-cost averaging strategies. The sustained ETF inflows can be seen as a quantification of market testing support levels, with buying strength below. If this “buy on dips” pattern continues, it could build a solid bottom for XRP, and once macro sentiment improves or catalysts emerge, accumulated energy might push the price upward.

Market Outlook: Can ETF Capital Flows Lead XRP to Break Key Resistance?

In the face of current consolidation, the key question is whether the continuous “drip feed” of ETF capital can ultimately coalesce into a powerful force that pushes XRP through key resistance levels and opens the upside. Historical experience suggests that quiet accumulation phases often precede significant price movements. For XRP, the psychological and technical barrier at $2.00 is a primary hurdle for bulls. Only by consistently and volumeously surpassing this level can the recent weakness be reversed and attract more trend-following capital.

Looking ahead, traders should closely monitor two interrelated indicators. First, whether the ETF capital inflow trend can be maintained. If inflows remain stable or accelerate even as XRP’s price rises, it would be a highly bullish signal, indicating genuine and sustained demand. Second, observe when the price responds to the growing ETF AUM. Each XRP held by ETFs represents a portion of circulating supply locked up; when this “implicit accumulation” reaches a certain level, the change in supply-demand balance will eventually be reflected in the price.

Of course, downside risks also exist. If XRP fails to hold the key support zone at $1.80 to $1.90, it could trigger a technical breakdown, with the price falling toward $1.77 or lower. Such a move might test ETF investors’ patience and could temporarily slow or reverse capital inflows. However, from a medium-term perspective, XRP has already successfully broken previous cycle highs earlier this year, and its overall structure remains intact. Therefore, the current correction is more likely a healthy retracement rather than the end of a long-term uptrend. For investors, paying attention to price charts while using ETF capital flows as an auxiliary indicator may provide a more comprehensive market view.

XRP-0.62%
BTC0.33%
ETH0.83%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)