XRP ETF Draws Strong Inflows But Ripple Price Signals Remain Mixed

By
Ritu Lavania
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XRP ETF Draws Strong Inflows But Ripple Price Signals Remain Mixed

What to Know:

  • The US-listed spot XRP ETF has attracted more than $1 billion in net inflows since its November launch, recording 30 consecutive days of inflows and outperforming spot Bitcoin ETFs.
  • Institutional demand for XRP-linked products continues to grow, even as XRP remains about 47 percent below its all-time high and has slipped to fifth place by market capitalisation.
  • Technical analysts remain cautious, with Peter Brandt warning of a potential double-top pattern on XRP’s weekly chart, as the token trades near $1.85.

The US-listed spot XRP ETF has recorded more than $1 billion in net inflows since its launch in November, which is one of the strongest debuts among recent crypto-linked investment products. The fund has not seen a single day of net outflows during this period, a performance that stands out against global market trends, particularly in Bitcoin-related products.

XRP ETF Inflows Strong Even as $XRP Price Hints at Bearish Movements

Data shows that while XRP ETFs steadily accumulated capital, US spot Bitcoin ETFs experienced roughly $2.9 billion in net outflows over the same span. The divergence has drawn attention from both traditional finance and digital asset markets, where investor sentiment has remained uneven following heightened volatility in the final quarter of the year. Executives and analysts view the inflows as a sign of rising institutional participation. Sygnum Bank’s Chief Investment Officer, Fabian Dori, said the trend points to growing acceptance of XRP among professional investors, with ETFs offering regulated access and contributing to more orderly market conditions.

Ripple Chief Executive Officer Brad Garlinghouse also highlighted the consistency of demand, noting that the spot XRP ETF has posted net inflows for 30 consecutive trading days. Despite the steady inflow of capital, XRP’s market performance has yet to reflect the optimism seen in ETF demand. The token remains about 47 percent below its all-time high of $3.65, reached during a previous market cycle. Its market capitalisation has also slipped, with XRP recently falling to fifth place among digital assets after being overtaken by BNB.Institutional interest in XRP-linked products has continued to expand.

Canary Capital’s first XRP ETF attracted around $250 million shortly after launch, according to market estimates. Other major asset managers, including Vanguard, Grayscale, and Bitwise, have rolled out related investment vehicles, which shows growing appetite on Wall Street for exposure to XRP through regulated structures.

Still, the strong inflows have not eliminated concerns about near-term price direction.Several market analysts have cautioned that technical indicators are flashing warning signs. Veteran economist and trader Peter Brandt has pointed to what he describes as a potentially bearish setup forming on XRP’s weekly chart.

In a post on X dated December 17, Brandt said XRP may be developing a double-top pattern, a formation closely watched by technical analysts. According to Brandt, XRP surged into the $3.30 to $3.50 range before pulling back toward the $2.00 level. A subsequent rally attempt failed to exceed the earlier peak, a pattern often interpreted as a loss of upside momentum. “This is a potential double top.Sure, it may fail, and I will deal with this if it does. But for now this has bearish implications. Love it or not, you need to deal with it,” Brandt wrote.

Since the second peak, XRP has gradually moved lower. The price has slipped below short-term moving averages, but momentum indicators suggest weakening trend strength. Market focus has shifted to the $2.00 area, often referred to by technicians as the neckline in a double-top formation. A decisive weekly close below this level could confirm the pattern and open the door to deeper declines toward earlier consolidation zones.

According to CoinGecko data, XRP has gained more than 31,800 percent since inception. Recent performance, however, has been subdued. Over the past year, XRP is down 26.5 percent. Losses of 12.4 percent over the past month and 9.4 percent over the last seven days underline the recent pressure.

At the time of reporting, XRP was trading near $1.85, down 2.9 percent over the previous 24 hours. Even as technical risks persist, demand for XRP-linked investment products continues to hold firm. Garlinghouse recently described the ETF milestone of the fund’s assets under management climbing past one billion dollars as evidence of pent-up demand for regulated crypto exposure, arguing that traditional asset managers expanding access could introduce digital assets to millions of new investors.

That demand has been visible in trading flows. US spot XRP ETFs have outperformed spot Bitcoin and Ether ETFs in recent weeks, measured by consistency of inflows rather than price action. Earlier this year, Teucrium Trading Chief Executive Officer Sal Gilbertie said the firm launched XRP-focused ETFs in response to clear investor demand for tradable, higher-risk exposure tied to the asset.

For now, XRP sits at the crossroads of strong institutional interest and sensitive technical signals.