U.S. spot XRP exchange-traded funds have crossed a significant threshold, surpassing $1 billion in cumulative inflows since their debut in November. The milestone highlights growing investor interest in regulated exposure to digital assets beyond bitcoin and ethereum, even as broader crypto markets face renewed volatility.
According to data from SoSoValue, spot XRP ETFs recorded $10.89 million in net inflows on Monday. Funds offered by Canary, Grayscale, and Franklin Templeton all posted gains, pushing total inflows past the $1 billion mark since the first spot XRP ETF began trading on Nov. 13.
Market observers say the steady accumulation reflects a shift in how institutions are approaching the crypto market. Vincent Liu, Chief Investment Officer at Kronos Research, noted that the inflows point to rising demand for altcoin exposure through regulated investment vehicles. He said that despite a cautious macroeconomic environment, investors appear willing to position early in assets that benefit from clearer regulatory narratives and distinct use cases.
While XRP-linked funds attracted fresh capital, other segments of the crypto ETF market showed mixed results. Spot Solana ETFs, which launched their first products in October, reported $35.2 million in net inflows on Monday. That brought their cumulative inflows to $711.3 million, signaling continued interest in alternative blockchain ecosystems.
In contrast, spot bitcoin ETFs experienced notable pressure. On Monday, bitcoin-focused funds recorded $357.7 million in net outflows, the largest single-day withdrawal in nearly a month. Fidelity’s FBTC accounted for the bulk of the exits with $230.1 million in outflows, followed by Bitwise’s BITB at $44.3 million. ETFs managed by Grayscale, Ark & 21Shares, and VanEck also reported net redemptions. The last time bitcoin ETFs saw heavier outflows was on Nov. 20, when more than $900 million left the funds in a single day.
Ethereum ETFs followed a similar pattern. Spot ethereum funds posted $224.8 million in net outflows on Monday, marking their largest daily withdrawal since Nov. 20. The synchronized outflows from bitcoin and ethereum products suggest a broader reassessment of risk rather than asset-specific concerns.
The movements in ETF flows coincided with a sharp drop in bitcoin’s price. On Monday, bitcoin slid from an early high near $89,000 to around $85,500 before stabilizing. As of early Tuesday, the cryptocurrency had recovered slightly to trade near $86,080, according to market data.
Liu attributed the decline to a shift in investor sentiment driven by macroeconomic uncertainty. He explained that traders rotated into safer assets as concerns resurfaced around liquidity and economic conditions. According to Liu, a recent Federal Reserve rate cut failed to significantly boost confidence, and with leverage unwinding and year-end liquidity thinning, selling pressure intensified and accelerated the price drop.
Despite the short-term volatility, the milestone reached by spot XRP ETFs stands out. It suggests that investors are increasingly comfortable diversifying into alternative crypto assets through regulated products, even as they trim exposure to more established names during periods of market stress.
