XRP ETF Flows Rebound After Recent Slowdown

While bitcoin captures the bulk of institutional flows, another asset quietly resurfaces in portfolios. ETFs backed by XRP have just recorded their first positive weekly inflow of May, reigniting speculation around a return of the Ripple token toward 2 dollars. Behind this renewed interest lies a global trend: the gradual return of institutional investors to altcoins through regulated financial products.

XRP ETFs record their best weekly flow of May

Investment products backed by XRP recorded 28.17 million dollars in net weekly inflows, marking “the first and largest weekly inflow recorded by XRP ETFs since the beginning of May”.

This increase contrasts with the more modest performances observed since the start of the month and reflects a gradual return of institutional demand. XRP also moved back above 1.40 dollars, strengthening speculation around a broader bullish movement.

Some data have particularly caught the market’s attention :

• 28.17 million dollars in net weekly inflows for XRP ETFs ;
• 11.28 million dollars injected during the single session of May 6 ;
• Canary leads flows with 7.50 million dollars ;
• Bitwise is in second position with 2.68 million dollars ;
• Analysts now anticipate a return of XRP toward 2 dollars before the end of the month.

The return of institutional capital is a particularly monitored signal by the market, as ETFs remain one of the main regulated exposure vectors to cryptos for traditional investors today. After several weeks of slowdown, XRP seems to benefit from renewed momentum fueled by the overall improved sentiment on cryptos.

XRP enters a new phase of scarcity

Beyond the weekly rebound of flows, another phenomenon now attracts investors’ attention: the rapid increase of the amount of XRP locked in ETFs. About 1.26 % of the total XRP supply is now estimated to be locked in these financial products. This evolution gradually modifies the market’s liquidity structure. Fewer tokens available for sale potentially means more price tension if institutional demand continues.

The aggregate assets under management of XRP ETFs now reach nearly 1.09 billion dollars. Ripple even cites a JPMorgan projection estimating that American XRP ETFs could attract between 4 and 8.4 billion dollars in their first year of operation.

Investors clearly want to expose their portfolios to XRP. This rise of XRP ETFs reflects a change in perception around the asset, long held back by regulatory uncertainties related to the dispute between Ripple and the SEC.

If this trend continues, XRP could gradually join the circle of cryptos closely followed by traditional asset managers. Bitcoin and Ethereum still largely dominate institutional flows, but recent figures show some investors are now beginning to look beyond the two historic leaders. For the market, each new capital entry into XRP ETFs now becomes a strategic indicator capable of influencing both available liquidity and medium-term price expectations.