XRP ETFs pull in $25.4 mln – So why are traders still holding back?

Key Takeaways

Are XRP ETFs boosting demand?

The new XRP ETFs pulled in $25.4 million in early inflows.

Are XRP traders confident in the price trend?

Not yet. Derivatives metrics show weak speculative appetite.

Ripple’s [XRP] market just can’t seem to make up its mind.

The new ETFs are pulling in inflows and increasing exposure, but derivatives traders aren’t showing the same excitement.

With momentum on one side and caution on the other, what is the native token’s price looking like?

XRP ETFs start off strong

The newly launched XRP ETFs are off to a solid start, bringing in $25.4 million in net inflows within just a few days of trading.

This early momentum has pushed total ETF assets to $257 million, so there’s strong initial interest from institutional players.

Source: SoSoValue

Most of the inflows were concentrated around the 14th of November, when the products saw their biggest spike, while the 17th brought in a smaller (but still positive) amount.

Investor appetite is building quickly, giving the asset some much-needed support.

Derivatives traders aren’t quite sure

While ETF inflows are picking up fast, XRP’s derivatives market is looking the other way.

Open Interest barely moved, around $1.37B billion for most of the week after pulling back from its earlier spike. Traders aren’t adding significant new leveraged positions, even with increased spot demand.

Source: Coinalyze

Funding Rates are also muted, sitting close to neutral. Neither longs nor shorts show much strength. Speculative appetite remains low, and derivatives traders are probably waiting for stronger signs.

Caution bleeds through

XRP was trading under pressure at press time, around $2.17 after a series of lower highs across the month. The RSI showed weak buying momentum and kept the token in a bearish space.

The CMF was also negative, which indicates outflows. Even though there was a brief spike in volume on the 17th of November, it wasn’t enough to shift the bigger trend.

Source: TradingView

Overall, XRP needs more trader faith before any meaningful upside can form.