XRP-based Exchange-Traded Funds (ETFs) are soaring, recording significant inflows that highlight a rising institutional appetite. On December 5, U.S. Spot XRP ETFs reportedly gained $12.84 million in net inflows, marking the 13th consecutive day of growth.
Record-Breaking Inflows in XRP ETFs
Financial data reveals that Franklin led the institutional pack with $5.7 million in new allocations, followed by Bitwise with $3.76 million. Additionally, Grayscale and Canary added $2.04 million and $1.34 million, respectively. Collectively, cumulative inflows have now reached a staggering $887.12 million, according to data reviewed by Finbold.
What’s striking is the rapid growth trajectory displayed by XRP ETFs since their mid-November launch. With over 400 million tokens locked, it’s possible that total net assets could hit the $1 billion milestone within the next week, potentially outpacing Bitcoin (BTC) and Ethereum (ETH) ETFs during comparable launch phases.
Institutional Support vs Retail Uncertainty
While institutional flows remain robust, XRP’s market performance paints a different picture. The token’s price slid more than 3% on Friday, extending its two-month decline by more than 30%. At the time of writing, XRP is trading at $2.07.
Adding to the challenges, nearly $8 million in long positions were liquidated within 24 hours. This triggered a sharp decline in crowd sentiment, with Fear, Uncertainty, and Doubt (FUD) metrics reaching their lowest levels in months. Moreover, technical indicators present a weak outlook. The token currently trades below all major short- and mid-term moving averages, while its Relative Strength Index (RSI) hovers at 44, signaling decreasing momentum.
Could a Turnaround Be Ahead?
Despite recent setbacks, historical data suggests that such periods of retail panic and institutional accumulation have often preceded significant rallies. This dynamic could make XRP’s short-term price movements volatile, but possibly rewarding for opportunistic traders.
Investing in XRP ETFs: Your Tools for Success
If you’re considering exposure to XRP through ETFs, platforms like eToro provide opportunities to invest in a wide array of assets, including cryptocurrencies. Known for its user-friendly interface and copy trading features, eToro empowers both beginners and seasoned investors to capitalize on market trends.
Remember, cryptocurrency investments come with high risks. Always evaluate your risk appetite before diving in.
