XRP ETFs Maintain Steady Inflows as Bitcoin, Ether ETFs Struggle

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TLDR

  • Spot XRP ETFs have sustained a 29-day inflow streak despite December’s volatile market conditions.
  • XRP ETFs saw net inflows of $8.44 million on Monday, pushing total inflows to $1.15 billion.
  • Regulatory clarity and XRP’s cross-border settlement functionality continue to boost investor confidence in the asset.
  • Bitcoin and Ether ETFs faced notable outflows in December, with Bitcoin losing over $1.1 billion.
  • Institutional flows into Bitcoin and Ether ETFs are expected to normalize after the holiday season.

Spot XRP exchange-traded funds (ETFs) have maintained a robust inflow streak, reaching 29 consecutive days through December. Even amid volatile market conditions, these funds have drawn consistent capital. As of Monday, spot XRP ETFs recorded net inflows of $8.44 million, lifting total cumulative inflows to $1.15 billion.

XRP ETFs Continue to Attract Steady Capital

Spot XRP ETFs have consistently drawn investor interest, with $478 million in inflows this month. Per data from SoSoValue, the funds hit total net assets of $1.24 billion. This ongoing success comes despite broader market challenges, as XRP prices faced downward pressure.

The steady flow of capital into XRP ETFs stems from regulatory clarity and the asset’s unique use case.

“XRP’s cross-border settlement use case offers differentiated exposure that continues to attract longer-horizon capital,” said Vincent Liu, CIO at Kronos Research.

He noted that the fund’s performance reflects growing confidence in XRP’s value proposition.

Comparison to Bitcoin and Ether ETFs

While spot XRP ETFs performed well, other crypto ETFs like Bitcoin and Ether struggled in December. Spot Bitcoin ETFs saw more than $1.1 billion in outflows during the month. The largest single-day outflow occurred on December 15, when $357.7 million exited Bitcoin ETFs.

Similarly, spot Ether ETFs followed a similar trend, with $612 million in net outflows. The largest withdrawal from Ether ETFs took place on December 15, totaling $224.8 million. December’s market turbulence led to volatility across both Bitcoin and Ether ETF products.

As year-end approached, the Bitcoin and Ether markets remained under pressure. However, experts suggest the trends may reverse once institutional activity picks up in January. Liu believes that despite recent outflows, institutional flows are expected to normalize after the holiday period.

Bitcoin and Ether are anticipated to see continued institutional positioning in the coming months. Liu suggests Bitcoin could experience a range-bound market profile, while Ether may benefit from increased adoption. Both assets are expected to face fluctuating demand, depending on market sentiment and broader macroeconomic conditions.