US Spot XRP ETF Surpasses $1 Billion Total Inflows

Since its launch in November, the US Spot XRP ETF has achieved a milestone with net inflows surpassing $1 billion, reflecting institutional interest in altcoin investment vehicles.

This development signifies growing confidence in altcoins like XRP among institutional investors, despite observed outflows in Bitcoin and Ethereum, amid macroeconomic uncertainties and liquidity tightening.

XRP ETF Achieves $1 Billion Milestone, Outshadowing BTC and ETH

The growing interest from institutional investors in regulatory-clear assets like XRP reflects a shift. While XRP sees substantial inflows, Bitcoin and Ethereum ETFs experienced significant outflows, indicating a diversification in investment preferences.

Market reactions were mixed, with Kronos Research’s Vincent Liu attributing the ETF’s success to regulatory clarity. Meanwhile, the market witnessed a decline in Bitcoin’s price, reportedly influenced by macro uncertainties and year-end liquidity concerns.

Giovanni Vicoso, Global Head of Cryptocurrency Products, CME Group, said, “We’ve seen strong demand for our current Spot-Quoted Bitcoin and Ether futures, with more than 1.3 million contracts traded since launched in June, and we are pleased to add XRP and SOL to our offering.”

Institutional Shift: XRP ETF Success and Market Dynamics

Did you know? XRP’s growing institutional interest follows its prior exclusion from traditional investment vehicles due to regulatory challenges, which were resolved, paving the way for its inclusion in spot ETFs.

XRP currently trades at $1.90, holding a market capitalization of $114.97 billion, according to CoinMarketCap. The asset has faced declines over recent periods: 24-hours (-4.76%), 7-days (-7.38%), and 90-days (-36.88%). Its trading volume spiked 94.64% to $3.88 billion in the last 24 hours.

Insights from Coincu research suggest that the introduction and success of XRP ETFs could usher in more diversified investment options, promoting broader adoption as other assets potentially follow similar regulatory paths. Such developments may sway market dynamics further away from traditional contenders like Bitcoin and Ethereum.