## XRP Funds Attract Massive Capital While Raising Sustainability Concerns

Since their launch in mid-November 2025, XRP exchange-traded funds (ETFs) have seen remarkable growth in the digital asset market, accumulating approximately $1.2 billion in net inflows. This performance starkly contrasts with overall market trends — Bitcoin funds experienced outflows of $2.4 billion, and Ethereum funds around $898 million during the same period.

### Institutional Support and Regulatory Developments

Institutional interest in XRP is driven by several strategic factors. In November, Ripple announced it had raised $500 million, valuing the company at up to $40 billion, with major investment funds such as Citadel Securities, Fortress, Pantera Capital, and Galaxy Digital participating. In the same move, Ripple revealed a strategic partnership with Mastercard and Gemini to develop stablecoin payment solutions.

Additionally, part of the demand is attributed to growing expectations surrounding the proposed Clarity Law, which would establish a clear regulatory framework for cryptocurrencies. According to Catherine Duling, President of Bitcoin Standard Treasury Company, XRP could be one of the biggest beneficiaries if this law becomes reality. XRP ETFs have recorded net inflows on nearly all trading days since their launch, with only one exception.

### Analysts’ Reservations and Long-Term Concerns

Despite these positive indicators, analysts express reservations. Brian Hwang, co-founder of Glider, argues that demand for XRP funds is separate from the actual drivers of the network’s value. He points out that XRP lacks a significant “developer share” — a metric tracked by Andreessen Horowitz. Without strong developmental activity and infrastructure building, growth may remain limited.

Hwang also raises concerns about long-term investor commitment, considering that many large investment funds do not regard XRP as a serious core holding. The fundamental question posed by skeptics is: Will interest in XRP funds continue, or is it just a temporary investment wave?

**Current XRP Data** — According to the latest updates, the 24-hour trading volume is approximately $82.92 million, with the circulating market cap reaching $126.01 billion.