XRP ETF attracts over $1 billion in funding! Why is the capital rushing in wildly while the price drops below $2?

01 Milestone Data

Since the launch of the US spot XRP Exchange-Traded Fund (ETF) in November 2025, it has demonstrated remarkable capital attraction. According to the latest data from SoSoValue, as of December 18th, the cumulative net inflow of XRP spot ETF has officially surpassed the $1.03 billion mark.

This figure signifies that XRP has become, after Bitcoin and Ethereum, another cryptocurrency asset successfully attracting large-scale institutional funds through an ETF structure.

Currently, the total net asset value of XRP spot ETFs has reached $1.14 billion, with an XRP net asset ratio of 0.98%. More notably, since its launch, these ETF products have not recorded any net outflows on any day, creating a unique phenomenon in the cryptocurrency ETF market.

02 Capital Inflow Details

Among various XRP ETF products, capital allocation shows a differentiated pattern. As of December 18th, data indicates that Canary XRP ETF (XRPC) performed the best, with a total historical net inflow of $382 million, making it the largest XRP ETF by assets under management.

Following closely is 21Shares XRP ETF (TOXR), with a single-day net inflow of $5.49 million, and a total cumulative net inflow of $5.67 million. Franklin XRP ETF (XRPZ) also performed well, with a single-day inflow reaching $8.7 million, bringing its net assets to $175 million.

In stark contrast, Bitcoin spot ETFs experienced a net outflow of $2.9 billion during the same period, and Ethereum ETFs also faced capital outflows.

This divergence in capital flows highlights increasing interest among institutional investors in alternative crypto assets with clear regulatory frameworks.

03 Market Contradiction Phenomenon

Despite continuous capital inflows, XRP’s price performance remains perplexing. The current XRP price has fallen below the key psychological level of $2, down approximately 47% from its all-time high of $3.65.

This divergence between capital inflows and price decline is relatively rare in the cryptocurrency market. From a technical analysis perspective, XRP is currently trading well below several key moving averages, including the 50-day exponential moving average at $2.19, the 100-day EMA at $2.37, and the 200-day EMA at $2.44.

The price has found temporary support around $1.90, but overall technical indicators still lean bearish. The Relative Strength Index (RSI) stands at 36.72, below the midline, indicating the market remains under downward pressure.

04 Analysis of Divergence Causes

Behind this apparent market contradiction are multiple forces at play. On one hand, institutions continue to buy XRP through ETF channels; on the other hand, long-term holders are engaging in the most aggressive asset rotation in nearly three years.

On-chain data shows that addresses holding between 1 million and 10 million XRP sold over 2.2 billion tokens in November, worth approximately $4.11 billion. This is the largest monthly sell-off since March 2023, pushing the total holdings to a 32-month low.

Retail investor interest is also notably subdued. XRP futures open interest currently averages $3.71 billion, a significant decline from the peak of $10.94 billion on July 22nd. This indicates that investors have lost confidence in XRP’s ability to sustain an upward trend.

Meanwhile, the Net Unrealized Profit/Loss (NUPL) indicator temporarily broke above the 0.25 threshold, technically categorizing XRP into the “fear” zone. Current market sentiment shows 50% short positions, suggesting investors remain skeptical about a continued upward trend.

05 Institutional Positioning and Product Features

Despite price pressures, Wall Street’s deployment of XRP ETF products continues to accelerate. Canary Capital’s first product attracted $250 million upon launch.

Traditional financial institutions like Vanguard, Grayscale, and Bitwise have also launched related products, indicating a growing institutional demand for XRP on Wall Street.

Products like REX Osprey XRP ETF (BATS:XRPR) offer investors alternative ways to access XRP. Unlike self-managed custody approaches, XRPR operates within a fully custodial framework, with private keys controlled by institutional-grade custodians.

These ETF products seek 1x exposure to XRP, holding the underlying tokens rather than relying solely on futures contracts or synthetic derivatives, providing an investment experience closer to spot XRP performance.

06 Technical Analysis and Key Price Levels

From a technical perspective, XRP’s price movement is compressed within a clearly defined technical range. The $2.28 level constitutes the current major resistance, with each attempt to sustain above it met with distribution waves.

There is a consolidation zone between $2.20 and $2.14, with daily closing prices fluctuating within this range. Ongoing portfolio adjustments by institutions keep the asset trapped in this narrow band, making it difficult to establish a clear trend.

The key support below is at $2.14. A decisive break below this level would confirm a failed rebound and could trigger a move toward $2.00 or lower.

Market analysis indicates the next critical support is at $1.78, where approximately 1.85 billion XRP were previously accumulated. If the price falls below this level, it could further decline toward the local low of $1.61 and the 200-week exponential moving average (EMA) around $1.40.

As of December 19, 2025, investors can access the latest real-time XRP/USDT prices and trading data on the Gate platform.

07 Market Outlook

Market analysts suggest that for bullish hypotheses to regain momentum, new capital inflows must be rapid enough to absorb ongoing selling pressure and break through $2.28 while maintaining momentum. Otherwise, XRP may enter a prolonged consolidation or even retest lower levels.

The next 7-10 trading days are critical. If resistance at $2.28 is broken and held, technical buying could resume; if support at $2.14 is broken, the upward trend may be invalidated.

Kronos Research Chief Investment Officer Vincent Liu pointed out that XRP spot ETF assets exceeding $1 billion reflect growing institutional interest in assets with clear regulation outside of BTC and ETH.

As the Federal Reserve shifts toward a more accommodative monetary policy and speculative excesses are cleared, market focus is shifting toward how risk exposure is expressed, rather than whether risks exist.

Future Outlook

The complexity of the cryptocurrency market is fully exemplified in the XRP case. The divergence between continuous ETF capital inflows and falling prices reveals diverse motivations and strategies among market participants.

Institutional investors’ deployment of XRP via ETFs indicates long-term confidence in this type of regulated asset; meanwhile, large-scale holder sell-offs may be driven by profit-taking or rebalancing needs.

This conflicting dynamic may continue to dominate XRP’s price in the short term until one side clearly overpowers the other or new market catalysts emerge to change the current landscape.