Institutional Interest Grows In XRP Amid Market Chaos

Financial products backed by XRP have just crossed the one billion dollar mark in assets under management. For several weeks, inflows have accelerated, driven by renewed institutional interest. In a market dominated by Bitcoin and Ethereum ETFs, the growth of Ripple’s asset surprises by its consistency. This movement contrasts with capital outflows observed elsewhere, signaling a discreet but firm repositioning of investors towards an asset long kept in the background.

An asset that inspires confidence

For Sui Chung, CEO of CF Benchmarks, the recent success of XRP ETFs is largely based on the anchor of this token in the crypto world for more than a decade.

“Many investors take positions on XRP because of its familiarity. It has a long trajectory,” he explained in an interview with CNBC.

In an environment where traditional investors seek assets with a stable and proven profile, XRP benefits from unique trust capital. This seniority acts as a form of “reassurance” for institutional investors, especially compared to newer and less documented projects.

Such a familiarity argument is accompanied by a quantified context that supports this dynamic. Several key indicators indeed confirm the growing appeal for financial products linked to XRP :

• 423.27 million dollars in net inflows have been recorded since last November 14 ;

• All XRP ETFs managed by Canary Capital, 21Shares, Grayscale, Bitwise and Franklin Templeton now reach a combined assets under management (AUM) of 1.14 billion dollars ;

• The XRP crypto shows a +417 % increase in performance since 2022, even though it has experienced a -22.81 % correction since the beginning of this year.

These figures translate into renewed confidence in an asset that some had buried too early. In the relative silence surrounding this progress, XRP is making a strategic comeback, unlike the massive outflows recorded on Ethereum.

The erosion of Ethereum and the rise of Solana strengthen XRP’s appeal

Alongside the rise of XRP ETFs, products backed by Ethereum face notable downward pressure. According to Farside data, spot ETH ETFs have experienced five consecutive days of outflows, totaling 533.1 million dollars.

This net decline contrasts with Bitcoin’s relative stability, whose ETFs saw fluctuating flows during the same period, with a return to 457.3 million dollars in inflows on Thursday, after two consecutive days of massive outflows. These data reveal a gradual rebalancing of institutional investment strategies, where the representation of BTC and ETH could be called into question.

Conversely, Solana is experiencing a significant resurgence of interest. Indeed, spot ETFs backed by SOL have recorded 102.8 million dollars in net inflows over the past nine days. An evolution that Sui Chung links to a better understanding of the project by investors : “the understanding that traditional investors have of Solana, the types of applications found there, the associated fees, and its number of active daily crypto users, gives a fairly convincing picture.”

This educational factor plays a central role in redefining institutional investors’ preferences, who seem increasingly inclined to diversify their exposures beyond the historical Bitcoin-Ethereum duopoly.

The gap between capital inflows and XRP’s price stability is striking. While ETFs attract investors, the spot market awaits a strong signal. This contrast highlights the persistent gap between institutional commitment and price dynamics, leaving open the question of a possible catch-up to come.