Just last week, the entire crypto ETP market saw a net outflow of $446 million, bringing the total outflows since the sharp correction on October 10 to a staggering $3.2 billion. However, XRP-related exchange-traded products bucked the trend, recording approximately $70.2 million in inflows for the week. As of December 30, XRP was trading at around $1.867.
The Exodus of Capital
According to the latest report from CoinShares, digital asset investment products have experienced outflows for two consecutive weeks. The $446 million net outflow was led primarily by Bitcoin and Ethereum products. Bitcoin ETPs saw nearly $443 million in outflows, while Ethereum products lost $59 million. Since the market shock in October, total outflows from crypto ETPs have climbed to $3.2 billion.
CoinShares notes that while year-to-date inflows stand at $46.3 billion, roughly on par with 2024’s $48.7 billion, total assets under management have grown by only 10%. This indicates that, factoring in capital flows, the average investor has not seen positive returns this year.
XRP’s Standalone Performance
Amid widespread market gloom, XRP and Solana funds stood out as rare bright spots, attracting $70 million and $7.5 million in inflows, respectively. Notably, the XRP ETF launched by Franklin Templeton at the end of November contributed $28.6 million in inflows.
Looking at the bigger picture, spot XRP products have attracted about $1.07 billion in net inflows since mid-October. Since the launch of the XRP and Solana ETFs, Bitcoin products have lost approximately $2.8 billion, and Ethereum products have seen outflows of around $1.6 billion, while XRP has become a key destination for fresh capital.
Institutional Endorsement
Institutional capital has been crucial to XRP’s independent rally. Since its official launch in November, the XRP ETF has yet to experience a single day of net outflows—a stark contrast to other mainstream crypto ETFs. The successful listing of these ETFs sends a strong regulatory signal. Traditional financial giants like Franklin Templeton and Grayscale have received NYSE Arca approval for their products, providing institutional investors such as pension funds and hedge funds with a legitimate, regulated entry point.
Vanguard’s policy reversal in early December, opening up spot crypto ETF trading, was interpreted by the market as a pivotal shift from opposition to adoption among institutions, and is expected to bring more traditional investors into this asset class.
On-Chain Activity
While XRP’s price performance may appear weak, activity on its underlying network, the XRP Ledger, tells a different story. Data shows that the tokenization of real-world assets on XRPL has grown by about 17%, and the market cap of stablecoins associated with XRPL activity has increased by roughly 29.5%.
The network processes around 900,000 transactions per day, frequently surpassing the 1 million mark, with payment volumes often reaching hundreds of millions or even over 1 billion XRP. This indicates that, despite price pressures, XRPL continues to serve as a robust, high-throughput settlement network with strong and stable infrastructure-level demand.
Technical Analysis and Price Outlook
As of December 30, XRP was trading within a tight range between $1.86 and $1.91, repeatedly failing to break above the psychological barrier at $2.00. Technically, the XRP price remains below all key moving averages, confirming the current downtrend. The $1.80 to $1.85 zone serves as the first major support; if breached, it could open the door to a decline toward the mid-$1.60s.
On the upside, initial strong resistance lies between $2.00 and $2.10, where both psychological and moving average pressures converge. Analysts believe XRP needs to close above $2.05 on a daily basis to signal a potential end to the downtrend.
Divergence in Global Markets
Geographically, capital flows show clear divergence. Since major Bitcoin and Ethereum ETPs are listed in the US, the American market once again led global outflows, totaling $460 million. Switzerland followed with $14 million in outflows. In contrast, the German market stood out as a notable exception, attracting $35.7 million in inflows last week. CoinShares notes that German investors appear to be using recent price weakness as an opportunity to accumulate positions.
Potential Tailwinds
Despite current price and technical challenges, XRP’s fundamentals are undergoing a structural shift. Persistent and robust ETF inflows are establishing a new institutional demand floor for XRP. Multiple firms—including 21Shares, ProShares, and CoinShares—are expected to launch their own XRP ETF products in the future. This could further disperse liquidity and create concentrated buying pressure in the spot market.
XRP’s future remains defined by a critical dividing line: on one side, a clear downtrend and the stubborn $2.00 resistance on the price chart; on the other, surging on-chain settlement activity and relentless ETF inflows. On Gate, XRP has fallen nearly 49% from its all-time high of $3.65 in July. Institutional investors are quietly accumulating at discounted prices on German exchanges, even as spot selling pressure continues to surge across trading platforms.
