XRP spot ETFs have made a strong entrance into the market, collecting $643.92 million in net inflows during their first month of trading. Despite price volatility, institutional investors showed steady interest, pushing total ETF assets to $676.49 million. Leading asset managers like Grayscale and Franklin Templeton drove consistent daily inflows, signaling rising confidence in XRP-based investment products and expanding access to regulated crypto exposure for traditional finance participants.
Institutional Demand Drives XRP ETF Growth
XRP spot ETFs recorded $644 million in net inflows during their debut month, according to market data. The total assets under management reached $676.49 million by the end of November, representing approximately 0.50% of XRP’s total market capitalization.
The funds experienced steady daily inflows, with nine out of the last ten trading sessions recording positive flows. The two strongest sessions saw $243.05 million in inflows on November 14 and $164.04 million on November 24.
Grayscale, Franklin Templeton, Bitwise, and Canary were the key issuers driving the momentum. Their products were responsible for the majority of ETF volume on US exchanges, as institutional investors began building exposure to XRP.
XRP Price Volatile as ETF Demand Grows
While ETF inflows were strong, XRP’s price remained unstable during the period, hovering around $2.23 as of late November. Analysts pointed to overall market weakness in the broader crypto sector.
Despite the volatility, ETF demand remained steady, helping to limit downside pressure. On November 26 alone, the ETFs saw $38.12 million in trading volume, suggesting ongoing interest. The growing ETF inflows also reduced the circulating supply on public exchanges.
ETF custodians have moved large XRP holdings into regulated storage, removing assets from public markets and leading to speculation about tighter liquidity conditions.
Asset Managers Expand XRP Offerings
Franklin Templeton disclosed that its ETF held 32.04 million XRP by November 25. This indicates continued accumulation by institutions through the fund. Meanwhile, other firms are preparing to join the XRP ETF market.
21Shares is scheduled to launch its XRP ETF on Monday. WisdomTree also has an application under review. These additions could increase competition among providers while expanding market access.
Grayscale, Bitwise, and Canary have continued to record steady flows, with collective holdings from all four issuers surpassing 0.5% of the total XRP supply. Their involvement has contributed significantly to the ETF market’s early momentum.
Other Altcoin ETFs See Limited Interest
While XRP ETFs performed exceptionally well, other new altcoin ETFs received minimal attention. Dogecoin, HBAR, and Litecoin ETFs started trading during the same period but struggled to attract meaningful inflows.
Bitwise and Grayscale’s Dogecoin ETFs together garnered approximately $2 million in their first 48 hours, a stark contrast to the impressive $643.92 million accumulated by XRP ETFs in the same timeframe.
Analysts attributed this difference to the broader institutional interest in XRP and clearer regulatory guidance, as the market shows greater confidence in XRP’s legal status following earlier court rulings involving the SEC.
ETF providers are keenly observing XRP’s performance as they assess future listings. Should demand remain consistent, it could pave the way for new products across more exchanges.
