Key Takeaways:
XRP-linked ETFs absorbed $60.5M in net inflows last week while Bitcoin and Ether funds shed over $1B combined.
XRP rose 1.2% to $1.37 as spot ETFs pulled in $60.5M in net inflows, while Bitcoin funds shed $1B and Ether products lost $65M.
"Investors are rotating into XRP as a relative-value play within the crypto ETF complex," James Butterfill, head of research at CoinShares, said. "The CLARITY Act momentum and persistent ETF inflows are creating a supply-tightening dynamic that Bitcoin and Ether currently lack."
CoinGlass data shows XRP-linked funds recorded inflows in 13 of the past 15 trading sessions, with the latest week contributing roughly $42M. By contrast, U.S. spot Bitcoin ETFs bled $1.4B over the same stretch, while Ether products shed $65M. The divergence marks the widest gap in institutional flows between XRP and the two largest crypto assets since XRP ETFs launched in November 2025.
The rotation has accumulated $1.41B in total XRP ETF inflows since launch, with nearly 905M XRP — worth about $1.12B — now held in custody across three funds. Each dollar of inflow requires open-market XRP purchases, gradually tightening circulating supply. If the trend continues, XRP's market structure could strengthen relative to Bitcoin and Ether, though the token remains 62% below its July 2025 peak of $3.65.
Bitwise Leads as Three Funds Absorb Supply
Among the three spot XRP ETFs, Bitwise's XRP fund leads with $337.71M in net assets and $462.24M in cumulative inflows — about 32.8% of the total. Canary's XRPC holds $290.41M with $452.03M in cumulative inflows, while Franklin's XRPZ manages $276.43M with $390.04M. Together, the three funds hold roughly 905M XRP, equivalent to about 1.5% of the circulating supply of 61.85B tokens.
On-Chain Signals Suggest Broader Interest
The institutional rotation coincides with a sharp spike in XRP wallet creation. Blockchain analytics firm Santiment recorded 4,300 new XRP wallets in a single 24-hour period — the fourth-largest daily surge this year. Fresh wallet creation can signal new network participation, particularly when paired with sustained capital inflows. However, XRP's broader network growth has trended lower since late 2025, suggesting the latest move may reflect speculative positioning rather than organic adoption.
The rotation trade faces a critical test in the coming weeks. XRP has struggled to break above $1.45 resistance despite six consecutive days of ETF inflows, and the token remains sensitive to macro headwinds including Iran tensions and Bitcoin's slide below $78,000. If XRP ETFs sustain monthly inflows above $100M, the supply-tightening effect could eventually push prices higher. But for now, the divergence between ETF flows and spot price action suggests the market is pricing in risks that fund flows alone have not yet overcome.
This article is for informational purposes only and does not constitute investment advice.
