XRP spot ETFs have reached $1.14 billion in assets under management thanks to high recognition and a 417% return over the past three years.
XRP based Exchange Traded Fund) have officially surpassed $1 billion in assets under management, marking a significant milestone in attracting Capital from traditional investors into the digital asset market. According to Sui Chung, CEO of CF Benchmarks – a provider of cryptocurrency price indices – this success largely stems from XRP 's long-standing familiarity with the mainstream investment community.
Speaking to CNBC, Chung explained that many investors are holding positions in XRP because of the Token 's familiarity and long history. Brand recognition combined with impressive price performance over the past three to four years has created strong appeal for institutional Capital .
Although XRP is currently trading at $1.81 and down 22.81% since the beginning of the year, the Token has still recorded an impressive 417% increase since 2022, according to CoinMarketCap data. This long-term performance has played a significant role in persuading traditional investors to enter the market through the tightly regulated ETF channel.
Strong Capital inflow into altcoin ETFs.
As of November 14th, XRP spot ETFs have recorded $423.27 million in net Capital , according to CoinGlass data. The five largest issuers, including Canary Capital, 21Shares, Grayscale Investments, Bitwise Asset Management, and Franklin Templeton, now manage a combined $1.14 billion in assets.
A similar trend is emerging with Solana as investors gradually gain a better understanding of the investment proposition for this blockchain. It's emphasized that understanding the applications running on Solana, the transaction fee structure, and the number of daily active users has created a rather convincing picture for traditional investors. In the last nine days, Solana spot ETFs have recorded $102.8 million in net Capital .
The growth of XRP and Solana ETFs occurred amidst significant volatility in the markets of the two largest digital assets. Spot Ether ETFs saw five consecutive sessions of net outflows totaling $533.1 million, according to Farside. Meanwhile, spot Bitcoin ETFs showed more erratic performance with $457.3 million Capital in the most recent session, partially offsetting the $634.8 million outflows from the previous two sessions.
This divergence in Capital flows reflects a trend of investors seeking opportunities to diversify their portfolios beyond Bitcoin and Ethereum, towards digital assets with clearer stories and higher growth potential.
