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Major Milestone: U.S. spot XRP ETFs reached $1 billion in cumulative net inflows on Monday since the first fund's launch on November 13th.
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Divergent Flows: This major inflow occurred on a day when both spot Bitcoin ETFs ($357.7 million) and spot Ethereum ETFs ($224.8 million) reported their largest single-day net outflows in nearly a month.
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Institutional Appetite: Analysts cite the steady XRP inflows as evidence of rising institutional appetite for regulated exposure to altcoins with improving regulatory clarity and differentiated narratives.
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Macro Jitters: The large outflows from BTC and ETH were attributed to traders rotating into safer assets amid renewed macro jitters and year-end liquidity unwinding, following a cautious market reaction to the recent Fed cut.
XRP ETFs Break the $1 Billion Mark
U.S. spot XRP exchange-traded funds (ETFs) achieved a significant milestone on Monday, surpassing $1 billion in cumulative net inflows since the first product launched on November 13th. Funds from Canary, Grayscale, and Franklin Templeton all contributed to Monday's positive flow of $10.89 million. This rapid accumulation highlights XRP's position as the fastest-growing crypto ETF category outside of Bitcoin and Ethereum since its debut.
Altcoin Funds Diverge from BTC and ETH
The major influx into XRP ETFs occurred in stark contrast to the performance of the dominant spot crypto ETF categories. On Monday, spot Bitcoin ETFs recorded massive net outflows of $357.7 million, led by Fidelity's FBTC. Simultaneously, spot Ethereum ETFs also saw notable net outflows of $224.8 million, marking the largest single-day outflows for both categories since November 20th.
Institutional Drivers and Macro Pressures
Analysts attribute the consistent demand for XRP ETFs to growing institutional appetite for regulated exposure beyond the top two cryptocurrencies, supported by improving regulatory clarity for XRP. Conversely, the sharp drop in Bitcoin's price—falling from an early high of around $89,000 to $85,500—and the subsequent outflows from BTC and ETH ETFs were linked to broader economic uncertainty. Kronos Research CIO Vincent Liu noted that traders were rotating into safer assets amid renewed macro jitters, as the recent Federal Reserve cut failed to alleviate a cautious outlook, triggering a sharper drop due to leverage unwinding and year-end liquidity concerns.
