XRP ETFs Smash $60M Record — So Why Isn’t XRP’s Price Exploding?
XRP exchange-traded funds just raked in a staggering $60 million in a single day. That's a record haul, signaling a massive institutional vote of confidence. Yet, the token's price chart remains stubbornly flat. What gives?
The Great Disconnect
It's the crypto market's favorite paradox: massive capital inflows with zero price impact. Wall Street pours money into a shiny new financial wrapper, while the underlying asset yawns. The ETF machine is humming, but the engine it's supposed to fuel is stuck in neutral. Classic finance—building a gold-plated highway to a town that hasn't been built yet.
Liquidity vs. Speculation
That $60 million isn't buying XRP directly on exchanges. It's buying shares in a fund that holds it. This creates institutional-grade exposure without the retail-fueled volatility. The money is real, but the pressure valve for price pumps is different. It's a slow-burn accumulator, not a rocket-fueled moon mission.
The Regulatory Overhang
Let's not forget the ghost at the feast. While the SEC's war chest is formidable, the sheer weight of this ETF demand tells a different story—one where big money is betting the legal clouds will clear. They're positioning for the sunshine, not trading the current drizzle.
Patience, Not Panic
So where's the pump? It's coming. This is institutional capital laying pipeline. When it finally connects to the main line, the flow will be relentless, not reckless. The record $60 million inflow isn't a fireworks show; it's the fuse being lit. Sometimes the smartest money moves so quietly, retail doesn't hear a thing until the check clears.
XRP-linked exchange-traded funds crossed $60 million in assets under management on December 17. The milestone comes even as XRP’s spot price continues to weaken, puzzling investors who expected ETF inflows to support prices. XRP was trading around $1.79, down more than 4% on the day, at the time of writing.
Institutional Buying Follows Lengthy Approval Cycles
One expert said that the ETF growth shows longer-term institutional processes, rather than short-term speculative demand.
Institutional investors typically conduct extensive due diligence before allocating capital, including reviews of market behaviour, risk metrics and historical performance. Final approvals to buy and hold assets can take months or, in some cases, years, particularly among conservative funds.
While the pace of crypto adoption has accelerated, institutional decision-making remains methodical.
ETF Structure Delays Impact on Spot Prices
Expert Chad Steingraber said investor confusion largely stems from how ETFs operate.
“ETFs are not trading XRP directly,” he said, explaining that funds trade ETF shares, similar to equities, during market hours. Fund managers then calculate net inflows after the trading session ends and purchase XRP later to back the fund.
This structure can delay buying activity in the underlying asset, meaning ETF inflows do not immediately translate into higher spot prices, contributing to the current disconnect between ETF growth and market performance.
XRP Remains Under Technical Pressure
Technical analysts say XRP continues to show signs of weakness on higher time frames. The token has been trending lower for several months, with warnings of a broader pullback since mid-year.
While short-term rebounds remain possible, they have so far failed to alter the broader bearish structure.
Support at $1.80 Under Scrutiny
XRP is testing a long-standing support zone between $1.80 and $1.90, which has held multiple times over the past year.
A sustained move below $1.80 WOULD weaken the technical outlook, analysts said. Below that level, attention shifts to $1.60, followed by a broader support range between $1.30 and $1.40 if selling pressure intensifies.
