Crypto Quill

Institutional investors are pouring back into XRP exchange-traded funds with a sharp turnaround. Spot XRP ETFs saw net inflows of $4.05 million in the last 24 hours. This marks an 83 percent jump in interest after recent outflows. But why is XRP bucking the trend while bigger coins like Bitcoin and Ethereum face heavy selling?

Spot XRP ETFs recorded a total net inflow of $4.05 million over the past day. Data from market tracker SoSoValue shows this strong rebound from midweek outflows of $2.21 million. This move highlights a clear return of big money to Ripple’s token amid broader market jitters.

The inflows come as institutions seek alternatives in the crypto space. Products from firms like Franklin and Bitwise led the charge. Grayscale’s XRP vehicle stayed flat, but overall appetite grew. One single paragraph here to note the quick pivot.

Experts point to XRP’s role in cross-border payments as a draw. With regulatory clarity improving, more funds are eyeing it for diversification.

Total assets under management for U.S. XRP spot ETFs now stand at about $1 billion. This includes around 790 million XRP tokens locked up. Cumulative net inflows since launch have reached over $118 million for some trackers.

Price Holds Near $1.42 Despite Monthly Drops

XRP’s price climbed modestly to around $1.43 in recent trading. It gained about 0.8 percent in the last 24 hours. Yet, the token faces headwinds with monthly losses topping 25 percent from January highs near $1.84.

Trading volume has dipped sharply too. On-chain payment activity on the XRP Ledger fell nearly 90 percent from early February peaks. This drop reflects waning retail interest, with Google Trends data showing lower searches.

Despite these pressures, the fresh ETF inflows offer a lifeline for price stability. Investors watch key support at $1.42 to $1.45. A break below could push it toward $1.30, while a push above $1.50 might signal a bullish turn.

Daily charts show bearish signals like MACD and RSI divergence. Still, institutional buying could counter this if it picks up steam.

Bitcoin and Ethereum ETFs See Heavy Outflows

In stark contrast, Bitcoin ETFs posted net outflows of $166 million in the same period. Ethereum funds lost $130 million, marking three straight days of redemptions. BlackRock’s products drove much of this, with $84 million exiting its Bitcoin ETF alone.

This divergence underscores selective demand in crypto. While top coins bleed, altcoins like XRP and Solana attract flows. Solana ETFs pulled in $5.94 million, adding to the altcoin rally.

ETF Type	Net Flow (Last 24 Hours)	Total AUM (Approx.)
Bitcoin	-$166 million	$98.33 billion
Ethereum	-$130 million	Part of $98.33B
XRP	+$4.05 million	$1 billion
Solana	+$5.94 million	Varies by product

The table above compares recent flows. It shows how institutions rotate away from majors toward smaller assets.

Broader market sentiment plays a role. Risk-off moods and leverage unwinds hit Bitcoin hardest. XRP’s utility in payments gives it an edge in uncertain times.

One key fact: Year-to-date, Bitcoin ETFs have seen $2.5 billion in outflows over five weeks. This tests investor confidence in the original crypto king.

What Drives the Institutional Pivot to XRP

Several factors fuel this XRP ETF rebound. First, the U.S. Clarity Act, set for review by March 1, promises better rules for digital assets. This boosts confidence in XRP after years of legal battles with regulators.

Second, XRP’s focus on fast, cheap transactions appeals to banks and firms. Ripple’s network handles cross-border transfers efficiently, unlike slower rivals.

Last week’s inflows for XRP products hit $33.4 million, pushing AUM to $2.5 billion in some estimates. This builds on a strong start since launches in late 2025.

• Institutions like Bitwise lead with steady buys, showing long-term bets.
• Retail fatigue eases as pros step in, potentially stabilizing prices.
• Derivatives activity rises, with more open interest in XRP futures.

These points break down the momentum. They suggest XRP could gain more ground if trends hold.

Analysts from firms like KuCoin note the $1.11 billion AUM milestone. It came after a month of zero outflows, signaling resilience.

Implications for Crypto Investors Today

For everyday investors, this XRP ETF surge means options to gain exposure without direct trading. ETFs simplify entry, reducing risks like wallet hacks. But volatility remains high, so diversification matters.

The rebound affects lives by hinting at crypto’s maturing market. If institutions keep flowing in, it could lift prices and spur adoption. Think faster global payments for remittances or business deals.

Yet, caution is key. Monthly losses remind us of crypto’s ups and downs. Watch for Clarity Act updates, as they could unlock billions more.

In a world of economic shifts, XRP’s story offers hope for innovation. It shows even in tough times, smart bets on utility pay off.

This influx into XRP ETFs captures a pivotal moment in crypto’s evolution. It brings excitement for growth while underscoring the need for steady nerves.