Institutional interest in XRP has accelerated far faster than most observers expected. Only a short time ago, the idea of holding XRP inside a 401(k) or traditional brokerage account felt remote. That changed once U.S. regulators began signing off on multi-asset crypto ETFs that included XRP alongside better-known names. A mid-2025 approval for a diversified crypto fund with several digital assets helped signal that XRP was no longer stuck on the regulatory fringe.¹
Issuers moved quickly. Asset managers from Bitwise to WisdomTree rushed to update or refile XRP ETF proposals after receiving encouraging feedback from the SEC.² Soon after, firms started publishing fee schedules and launch details for dedicated XRP products, even as some filings were still working through the formal process.³ The message to the market was clear: once the legal dust settled, issuers wanted to be ready on day one.
When those approvals finally arrived, money followed. The first U.S. spot XRP ETF reportedly crossed the nine-figure asset mark within weeks of launch.⁴
How ETF Demand Changes XRP’s Supply Picture
New inflows are not just a sentiment gauge; they also shape XRP’s supply dynamics. Spot ETFs must acquire and custody the underlying tokens, effectively lifting coins out of day-to-day trading. The pattern echoes what happened in commodities a generation ago, when gold ETFs absorbed metal and tightened the available float.⁸
Recent data show how quickly that process can evolve. In late 2025, XRP funds saw a nearly unbroken run of daily inflows, reportedly totaling hundreds of millions of dollars across a short stretch of trading sessions.⁶ Yet XRP’s price drifted lower during the same period. The most likely explanation is that long-time holders used ETF demand as an exit ramp, selling into the institutional bid while funds quietly accumulated coins. Analysts have described the ETFs as a “liquidity bridge” that lets large sellers reduce exposure without triggering the kind of disorderly moves that used to define crypto markets.⁶
What 2026 Might Look Like
If this pattern persists, the structure of the XRP market could look very different by the end of 2026. A growing share of supply would sit in ETF custody or in the hands of a relatively small group of large holders, leaving a narrower float on exchanges. The same CryptoSlate data that highlighted heavy inflows also pointed to concentration: a meaningful percentage of all XRP is already controlled by a small set of entities, including Ripple itself.⁶ That mix—steady institutional demand and a shrinking pool of freely traded coins—creates the conditions for sharper moves when sentiment swings.
Still, institutional participation can be a stabilizing force. Coins locked inside ETFs are not being flipped intraday, and large allocators tend to move more deliberately than retail traders. At the same time, concentration risk cuts both ways. If one of the major players were forced to rebalance or unwind, the impact on price could be amplified precisely because so much supply has migrated into a few large baskets. As one industry CEO noted in a separate interview about crypto ETFs more broadly, the same structures that help smooth volatility on the way in can magnify it when flows reverse.⁷
For investors, the rise of XRP ETFs is ultimately a story about choice and structure. Access is easier, information is richer, and the market is more institutional than it used to be. The trade-off is that understanding XRP now means watching fund flows, custody concentration, and regulatory headlines—not just a price chart.
Footnotes
NCFA Canada, “Grayscale ETF Wins SEC Approval for 5 Crypto Assets,” July 2, 2025.
“XRPR and XRPI ETFs Power XRP to $2.64 as Ripple Prime and $100M Inflows Signal New Bull Phase,” TradingNews, October 26, 2025.
“XRP Price Drops 7% Amid Bitwise and Grayscale XRP ETF Fee Announcements,” InsideBitcoins, November 4, 2025.
“XRPR and XRPI ETFs Power XRP to $2.64 as Ripple Prime and $100M Inflows Signal New Bull Phase,” TradingNews, October 26, 2025.
“Teucrium CEO Hails ‘Extraordinary’ XRP ETF Success with Hundreds of Millions in Inflows,” CoinDesk, October 26, 2025.
Oluwapelumi Adejumo, “How XRP Became the Top Crypto ETF Trade Despite Price Slides Toward $2,” CryptoSlate, December 2, 2025.
Anjali Belgaumkar, “Teucrium CEO Says XRP’s Next Surge Begins With a ‘Ripple Bank’,” CoinPedia, November 23, 2025.
Suzanne McGee and Polina Devitt, “Investors Flock to Gold ETFs as Metal’s Price Shatters Records,” Reuters, October 8, 2025.
The information provided on this page and its associated documents is intended to provide a broad overview for discussion purposes. It is subject to change and should not be taken as financial or investment advice. Teucrium Trading LLC and Teucrium Investment Advisors, LLC make no offers to sell, solicitations to buy, or recommendations for any security.
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