Funds flow into ETFs but XRP 'struggles'

JOON HYOUNG LEE

Summary

XRP exchange-traded funds (ETFs) have seen net inflows for 18 consecutive trading days, with cumulative net inflows approaching $1 billion, the report said.
However, XRP's price has fallen about 16% in the past month and has remained weak, the report said.
The market has suggested that ETF inflows could be reflected in XRP's price after a delay.

Crypto Now

Cumulative inflows near $1 billion

Ecosystem weakness, down 16% in one month↓

Funds continue to flow into XRP exchange-traded funds (ETFs), but XRP's price continues to underperform. However, some observers say that sustained institutional inflows could lead to a belated rally.

On the 14th, crypto asset data analytics firm SosoValue said the U.S. XRP spot ETF recorded net inflows for 18 consecutive trading days as of that date. The XRP spot ETF has not recorded net outflows since its mid‑last‑month launch. Cumulative net inflows amounted to $950 million (about 1.4 trillion won), approaching $1 billion.

However, XRP's price has struggled. According to CoinMarketCap, XRP's price has fallen nearly 16% in the past month and is trading around $2. Despite the spot ETF launch, which typically acts as a positive for token prices, the price has instead declined. On the 12th, XRP briefly ceded the fourth spot in cryptocurrency market capitalization to Binance Coin. Analysts say recent selling pressure in the spot market has limited XRP's upside.

The downward trend has multiple causes, but the weakness of the XRP ecosystem is cited as one of the main reasons. According to DeFiLlama, the total value locked (TVL) of the XRP-based blockchain 'XRP Ledger' stood at $68.7 million as of that date, nearing this year's low. U.S. crypto media Cointelegraph said, "(The TVL decline) means usage of decentralized apps on the XRP Ledger is decreasing," adding, "XRP is being pressured as competing blockchains like Solana strengthen their positions in the dApp ecosystem."

XRP is not the only crypto that weakened immediately after ETF launches. Bitcoin also did not see a full-fledged rally until about three weeks after the spot ETF launch in early last year. Ethereum hit a record high 13 months after its ETF launch. Some analysts argue that ETF inflows may be reflected in XRP's price with a time lag.

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