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Nearly a Billion Euros Flows into XRP Funds, But When Will the Price Follow?

XRP op Wall Street

Photo: Wit Olszewski & Kirkam (Shutterstock)

The new investment funds for XRP are proving to be a major success on the stock exchange. Since their launch a month ago, nearly a billion euros has already been invested in the XRP exchange-traded funds (ETFs).

Brad Garlinghouse, CEO of Ripple, the company behind XRP, calls them the fastest-growing crypto ETFs in the U.S.

Almost a Billion in XRP ETFs
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Since their launch last month, approximately $944 million (€811 million) has been invested in the four different American XRP ETFs, according to data from SoSoValue.

Notably, there has been a net inflow every week. This means the XRP ETFs have performed better than ETFs for Ethereum and Solana in the same period.

The CEO of Ripple celebrated the milestone on social media, calling them the fastest-growing crypto spot ETFs in the United States at the moment:

“Less than 4 weeks and XRP is now the fastest crypto spot ETF to reach $1 billion (since Ethereum).”

However, there is an important caveat here. The Bitcoin ETFs saw nearly $3 billion in inflows in their first month.

Furthermore, both Bitcoin and Ethereum ETFs initially faced significant outflows because existing Grayscale funds (GBTC and ETHE) were converted to ETFs. Many investors exited these old funds due to their higher fees. This effect does not apply to the new XRP ETFs, making the inflow a purer reflection of actual demand.

Interest in Ripple Among Stock Market Investors
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The growth seems to be continuing this week, with more than €33 million in net inflows since Monday and still half a week to go.

Investors appear to have a slight preference for the funds from Canary and Grayscale, but the funds from Franklin Templeton and Bitwise are not far behind.

Meanwhile, work is underway on the launch of a fifth XRP ETF from 21Shares.

Garlinghouse attributes the growth to a combination of pent-up demand and an appreciation among stock market investors for sustainability and stability. He wrote:

“Sustainability, stability, and community are underrated themes that are important to this new group of ‘off-chain’ crypto owners.”

The launch of the XRP ETFs followed a period of some successes for XRP. For instance, Ripple announced several new partnerships to encourage the use of the XRP network or its associated stablecoin, RLUSD.

XRP Price Still Lagging Behind
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Yet, the price of XRP seems to be reacting little to the positive sentiment.

Currently, the price is hovering around $2.07, meaning the cryptocurrency has not yet broken out of the downtrend of the past two months.

Analysts have been speculating for some time that a breakout from this trend could lead to new highs.

Soon, the price will reach a point that will provide clarity: if the price shoots up out of the triangle on the chart, a further price increase is likely, but if it drops below, that does not bode well.