Demand for XRP exchange-traded funds shows no signs of ebbing.
Spot ETFs backed by the Ripple-linked crypto have attracted $954 million in investment since Canary Capital’s blockbuster November debut, SoSoValue data shows.
That is triple the $293 million in Solana products over the same window.
By contrast, Bitcoin ETFs saw $2.5 billion in selling, while Ethereum ETFs also bled $471 million, DefiLlama data shows.
ETFs are “significant flow machines,” Hyunsu Jung, CEO of treasury firm Hyperion DeFi, told DL News.
They “play a key role in providing market participants with regulated access to the underlying tokens and can push assets to new price discovery in bullish environments,” Jung said.
‘It was inevitable’
The leading performance of XRP ETFs — four straight weeks of positive inflows — comes amid a stagnant crypto market that is still down over $1 trillion from its October peak.
XRP’s token price is at $2.01, or 45% below its all-time high set in July.
Analysts have told DL News they see ETF proliferation as a key catalyst.
Macroeconomic factors are also critical to crypto ETF performance, according to Jung.
“We believe that additional liquidity will become available in global markets as central banks end quantitative tightening and lower interest rates, which often has flowed to more risk-on assets,” he said.
The Federal Reserve on Thursday cut interest rates by another 0.25%, bringing its key lending rate to the lowest level in three years.
When asked about Vanguard’s late entry into the crypto ETF arena, Jung said, “it was inevitable.”
“Vanguard has recognised at this point that Blackrock, Fidelity and other platforms build massive digital asset ETF franchises, and seen the broader global institutional adoption of digital assets as both stores of value and critical technology infrastructure.”
New launches
Jung said he anticipates new ETFs linked to other crypto tokens, such as HYPE, which powers the perpetual futures exchange Hyperliquid.
“We expect ETFs for Hyperliquid such as 21Shares or BItwise Hyperliquid ETF,” Jung said.
“If approved, will see significant institutional demand from traditional asset managers looking to gain exposure to one of the highest-revenue-generating blockchain platforms.”
“Unique on-chain products like Hyperliquid and Polymarket should benefit from increasing global adoption as awareness of digital infrastructure continues to proliferate,” he said.
Crypto market movers
Bitcoin is down 2.8% over the past 24 hours, trading at $90,000.
Ethereum is down 4.1% on the day and is trading at $3,180.
