XRP Spot ETF attracts $46 million in a single day; why is institutional interest continuing to heat up?

On January 5th, the US spot XRP ETF once again experienced strong capital inflows, with a single-day net inflow of approximately $46.1 million, bringing the total assets under management to $1.65 billion, reaching a new phased high. More notably, all listed XRP spot ETFs on that day did not experience net capital outflows, with the overall trading volume reaching $72 million. This data not only reflects changes in capital flow but also indicates a deep structural transformation occurring in the XRP market.

Rapid ETF Growth, Strong Institutional Demand

From the daily performance, the net inflow of $46.1 million is indeed significant. More importantly, this is not an isolated event. According to data, during the week from December 29 to January 2, the weekly net inflow of XRP spot ETFs reached $43.16 million. This means that since 2026, XRP ETFs have been absorbing over $40 million in new funds each week.

Multiple Issuers Advancing Simultaneously

This round of capital inflow has not been concentrated in a single issuer but shows a healthier, more diversified pattern.

This multi-point growth indicates that demand for XRP ETFs is not driven by short-term sentiment but stems from broad allocation needs among various institutional investors. The cumulative net inflows of Bitwise and XRPZ, reaching $265 million and $252 million respectively, demonstrate ongoing institutional recognition of these products.

Medium- to Long-term Allocation, Not Short-term Trading

An easily overlooked but extremely important detail is that, despite the recent significant rise in XRP prices, there has been no obvious profit-taking at the ETF level. What does this imply?

Currently, XRP assets held by ETFs account for approximately 1.17% of XRP’s total market cap. If the buying was primarily short-term trading, one would expect to see reductions and cash-outs after the price increase. However, all XRP spot ETFs continue to experience net inflows, strongly indicating that institutional investors’ buying is more aligned with medium- to long-term allocation rather than quick arbitrage.

Why Choose ETFs Instead of Holding Coins Directly

This reflects an important shift in market structure. Compared to direct holdings, indirectly holding XRP through compliant, regulated ETF products offers several clear advantages:

• Reduced custody risks and compliance barriers
• Increased convenience for traditional funds to access the XRP market
• Avoiding the complexities of private key management
• Better liquidity and trading convenience

This shift suggests that XRP is gradually evolving from a market dominated by retail direct holdings into a market more friendly to institutional allocations.

Market Environment Supports Continued Inflows

This wave of ETF capital inflows is not happening out of thin air but is supported by multiple factors.

XRP’s price has increased by 25.44% over the past 7 days, with an 8.94% rise in the last 24 hours. The current trading price is $2.34, with a market capitalization of $14.188 billion, ranking 4th among cryptocurrencies. Market attention and recognition for XRP have clearly increased.

Meanwhile, according to relevant information, over 130 cryptocurrency-related ETF filings have been submitted to the U.S. Securities and Exchange Commission, with growing interest in SOL and XRP ETFs. This indicates that regulatory environment improvements are releasing more institutional demand for allocations.

Key Observations on Future Trends

Based on current trends, the scale of XRP ETFs may continue to expand. First, the $1.65 billion scale still has significant growth potential compared to BTC and ETH ETFs (BTC spot ETF weekly inflow around $459 million, with a total net inflow of about $57 billion). Second, as more crypto ETFs are approved, market recognition of coins with real-world applications like XRP may continue to rise.

Third, ETF capital flows are becoming an important indicator for observing XRP market sentiment and medium- to long-term trends. When ETFs experience continuous net inflows, it usually signals institutional optimism; the opposite suggests caution.

Summary

The sustained strong performance of XRP spot ETFs demonstrates three core facts: institutional investors’ allocation demand for XRP is continuing to heat up; the market is shifting from retail direct holdings toward institutional ETF allocations; and this transformation reflects market maturation and normalization. Although the total scale of $1.65 billion still lags behind BTC and ETH, its growth momentum is evident. If this trend continues, XRP ETF scale is likely to keep reaching new highs in the future, further attracting more institutional capital.