XRP-linked exchange-traded funds reached about $60 million in assets under management on December 17, according to market reports, even as XRP’s spot price slid.
At the time of reporting, XRP was trading around $1.86, down more than 8% in the last week. That gap between ETF growth and a falling spot price has left some investors puzzled.
ETF Flows And How They Work
According to Chad Steingraber, the way ETFs operate helps explain the disconnect. ETF shares trade on exchanges like regular stocks during market hours.
Fund managers then tally net flows at the end of the trading day and arrange purchases of the underlying XRP after the market closes. Because of that timing, ETF inflows do not always translate into instant buying pressure on the spot market.
Institutional Processes Take Time
Based on reports, part of the picture is the nature of institutional decision-making. Large funds tend to move slowly. They run checks, review risk, and take time to approve new positions.
That process can take months or longer. So an increase in ETF AUM can reflect careful planning and staged capital allocations rather than a rush of short-term bets.
Price Action Shows Technical Weakness
On charts, XRP has been under pressure for months. Traders watching longer time frames point to a steady downtrend and multiple warnings of a broader pullback since mid-year.
The token has slid about 12% over the past month. Support between $1.80 and $1.90 is now being tested. A sustained break below $1.80 would likely shift focus to $1.60, and then to a wider support band near $1.30 to $1.40 if selling continues.
ETF Growth Still Small In Context
While $60 million sounds meaningful, that sum is small compared with AUM levels seen in larger crypto ETFs, and it may not be enough on its own to move markets.
ETF structures differ, too. Some managers may hedge, use staged buys, or employ other tactics that change how and when they add XRP to reserves. These operational choices can mute any immediate impact on price.
Non-Empty XRP Wallets Steadily Climbing
Meanwhile, reports show that the number of non-empty wallets on the XRP Ledger has been climbing. Santiment has highlighted rising counts of addresses holding some XRP.
Over the past month, while the token fell in price, on-chain wallet activity suggested accumulation by some holders. That pattern raises questions about whether larger buyers are quietly adding to positions.
What This Means For Traders
For now, markets show mixed signals. ETF AUM growth points to rising institutional involvement over time. Price action, however, signals caution.
Traders and investors will be watching whether end-of-day ETF purchases increase demand on the spot market, and whether the $1.80 level holds.
The coming days and weeks may help reveal whether AUM gains translate into broader buying or if technical pressure continues to dominate.
Featured image from Unsplash, chart from TradingView
