XRP ETFs Hit Big While Bitcoin and Ethereum Lag

XRP exchange-traded funds (ETFs) in the U. S. have hit a major milestone, crossing $1 billion in assets. This happened because investors have been putting money into these funds every trading day since they started in mid-November. Unlike bitcoin and ethereum ETFs, which have seen some days with money taken out, XRP ETFs have had a steady stream of new investments. As of December 12, the total value of these XRP ETFs reached about $1. 18 billion, with around $975 million in new investments. This streak of daily inflows started on November 13 and has continued for 30 straight trading days. This is impressive, especially when you consider that the overall market for risky assets has been struggling. Crypto prices, along with other risky investments, have been going down as investors reassess economic conditions and market trends. Bitcoin and ethereum have been trading lower recently, and many other major cryptocurrencies have followed this downward trend. However, XRP ETFs have continued to attract investments. Some analysts believe this is because investors are more focused on the structure and accessibility of these funds rather than the short-term price movements of XRP.Mati Greenspan, founder of Quantum Economics, pointed out that the rapid growth of XRP ETFs doesn't necessarily mean that XRP has suddenly become a better investment. Instead, it shows that investing in XRP has become easier. The ETF structure is important, especially for investors who prioritize compliance, security, and liquidity over short-term price changes. Greenspan also noted that ETF inflows can stay positive even when the market is down because they reflect long-term investment strategies rather than short-term trading decisions. Investors might be adding to their positions while prices are softening if they are thinking in terms of quarters or years, not days. This consistent inflow into XRP ETFs also highlights how XRP is different from the more established bitcoin and ethereum ETFs. Those funds, which make up the majority of crypto ETF assets, have been more affected by macroeconomic factors and stock market volatility, with inconsistent flow patterns in recent weeks. In contrast, XRP funds have attracted smaller but more consistent investments, suggesting a more long-term investment strategy. Asheesh Birla, CEO of Evernorth, explained that institutional investors are looking for assets that fit within regulated frameworks and offer clear benefits. The broader implication is that crypto ETFs may be entering a new phase where capital is spreading beyond just bitcoin and ethereum to include alternative assets that can be packaged into regulated wrappers, even as the underlying spot market remains volatile.