Investors poured $1.1 billion into XRP ETFs, why has the price stalled?

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Nhà đầu tư đổ 1,1 tỷ USD vào ETF XRP, vì sao giá chững lại?

Five spot XRP ETFs in the US recorded net inflows of $1.13 billion as of December 23, raising their total assets to $1.125 billion, indicating strong institutional demand for XRP .

After years of legal disputes, XRP is gaining a new foothold on Wall Street. Cash flow and asset management data from XRP spot crypto ETFs help investors assess real buying power, separating short-term price fluctuations from long-term accumulation trends.

MAIN CONTENT
  • The five-point XRP ETF attracted $1.13 billion in net inflows, bringing its total assets to $1.125 billion (as of December 23).
  • The Spot XRP ETF has recorded inflows for 33 consecutive trading sessions since November 13th.
  • Franklin Templeton surpassed the 100 million XRP holding mark, while XRP price continued to weaken and negative social media sentiment increased.

Capital into the spot XRP ETF increased rapidly after its listing.

The five-spot XRP ETF launched on November 13th attracted net inflows of $1.13 billion by December 23rd, bringing its total assets to $1.125 billion, according to SoSoValue.

XRP spot ETFs offered by Canary, 21Shares, Grayscale, Bitwise, and Franklin Templeton are experiencing increased demand. According to SoSoValue data , total net inflows reached $1.13 billion as of December 23rd, while the group's total assets reached $1.125 billion.

Notably, the difference between "net cash inflows" and "total assets" is quite small, implying that assets under management largely come from new Capital inflows, rather than a sharp increase due to price fluctuations during the same period.

The Spot XRP ETF maintains a chain of 33 consecutive sessions of cash inflows.

Since its launch, the XRP spot ETF has recorded net inflows on each trading day, marking a chain of 33 consecutive sessions.

Amidst the volatile cryptocurrency market, the XRP spot ETF group has demonstrated rare stability: net Capital inflows have been observed every trading day. This chain of 33 consecutive sessions signals steady demand rather than pump- and-Dump schemes driven by news.

During the same period, Bitcoin ETFs and Ethereum ETFs saw several sessions recording significant outflows. This contrast reinforces the hypothesis that a portion of institutional Capital is reallocating its priorities towards XRP, rather than focusing solely on Bitcoin or Ethereum.

Franklin Templeton surpasses 100 million XRP holdings in ETF.

Franklin Templeton's XRP spot ETF has surpassed the 100 million XRP mark, reaching approximately 101.55 million XRP as of December 22nd, valued at roughly $192.7 million.

Franklin Templeton is a prominent driver in this wave of interest. According to an update Chia on X (link) , the fund has officially surpassed 100 million XRP holdings. As of December 22nd, the fund held approximately 101.55 million XRP, equivalent to approximately $192.7 million USD at the valuation mentioned in the original content.

An increase in holdings by a large institution is often seen by the market as a signal of "acceptability in terms of compliance and risk," especially with XRP, which has faced legal pressure in the past.

XRP price weakens despite net buying by institutions via ETFs.

Despite strong buying by the ETF issuer, XRP continued to decline; at the time of the article, XRP was trading at $1.84, down 1.68% in 24 hours and down 10.55% in the month.

The paradox lies in the fact that buying pressure from Crypto ETF products does not immediately translate into a sustained upward trend for the spot price. According to price data cited in the original content, XRP is trading around $1.84, down 1.68% in 24 hours and down 10.55% in a month.

In reality, ETF inflows are part of the demand, but prices are also influenced by profit-taking, asset Capital , market liquidation , and retail investor sentiment. Therefore, "net-buying" ETFs can simultaneously experience short-term corrections.

Rising negative sentiment can sometimes be a negative signal for XRP.

Santiment data shows a sharp increase in negative commentary on XRP ; history suggests that periods of extreme FUD are sometimes accompanied by the potential for a rebound.

Analysis based on Santiment data shows that the level of negative comments on social media regarding XRP is unusually high. Some traders see this as a contrarian signal: when pessimism reaches its peak, the probability of a sudden surge may be higher than in previous cycles.

However, "FUD" is not a reliable indicator. It's more reasonable to XEM it as an additional variable: if ETF inflows remain positive while retail sentiment is poor, the market could form a "compressed spring" state, only rebounding when liquidation and macroeconomic conditions are favorable.

“XRP is seeing more negative comments on social media than Medium. Historically, this setup has led to price increases. When retail investors doubt a coin's ability to rise, the likelihood of a rise becomes significantly higher.”
– Santiment, quoted from a post on X

Conclusion: Stable XRP ETF inflows suggest a shift in institutional priorities.

The contrast between the steady inflows of XRP ETFs and the net outflows in Bitcoin/Ethereum ETFs suggests that institutional Capital may be shifting its focus.

Two points to watch include: (1) spot demand for XRP ETFs continues to hold steady despite volatility, implying investors are not just reacting to short-term “noise”; (2) this level of accumulation is often linked to long-term expectations about the utility or market Vai of XRP.

  • The contrast between demand for XRP ETFs and outflows from Bitcoin/Ethereum ETFs may reflect a shift in institutional priorities.
  • Positive cash inflows during volatility suggest that buyers are positioning themselves for the longer term rather than trading based on short-term fluctuations.

Frequently Asked Questions

What is the Spot XRP ETF?

The Spot XRP ETF is an Exchange Traded Fund that holds spot XRP as its underlying asset, allowing investors to track XRP price fluctuations through an ETF product without needing to self-custodate the Token.

Why is the XRP ETF inflow increasing but the XRP price still falling?

XRP price also depends on overall market supply and demand, profit-taking, liquidation , and sentiment. ETF inflows are an important source of demand, but this can be offset by selling pressure on exchanges or short-term Capital flows.

What does it mean that Franklin Templeton holds over 100 million XRP ?

This milestone indicates that a large institution is increasing its exposure to XRP through an ETF, which is generally seen as a signal of higher institutional demand and "acceptance," although it doesn't guarantee an immediate price increase.

Could negative sentiment on social media be a signal for price increases?

In some historical periods, extreme levels of FUD have coincided with upward surges driven by conflicting indicators. However, this is not a definitive signal and should be considered in conjunction with money flow data, price trends, and market conditions.

Source
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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