XRPI and XRPR ETFs Ignite $643.9M Inflows as XRP Supply Shrinks and Price Targets Shift Toward $3.80

XRPI and XRPR ETFs Ignite Institutional Demand as Ripple (XRP-USD) Tests $2.20 Support with $643.9M Monthly Inflows

The Ripple-linked ETFs XRPI (NASDAQ:XRPI) and XRPR (BATS:XRPR) are reshaping the altcoin landscape, generating $643.92 million in net inflows during their debut month while XRP-USD trades around $2.19, down 1.54% on the day. The XRPI ETF closed at $12.69, up 2.53%, before gaining to $12.80 (+0.87%) after hours, while XRPR fell 2.67% to $17.85 after closing the prior session at $18.34. Both ETFs remain volatile, with XRPI’s day range between $12.66–$13.29 and XRPR’s between $17.83–$18.62, but their trading volumes—599,650 shares for XRPI and 51,600 shares for XRPR—confirm heavy participation as institutional products linked to Ripple gain traction. XRP’s market capitalization stands near $133 billion, representing a 50% gain YTD despite a 40% drawdown from its July high of $3.65.

XRP ETF Inflows Surpass Bitcoin and Ethereum Counterparts Amid Broader Market Rotation

While Bitcoin ETFs suffered $3.5 billion in redemptions and Ethereum funds saw $1.5 billion in outflows this month, XRP ETFs accumulated record inflows, showing clear investor rotation into alternative crypto assets. Franklin Templeton, Grayscale, Bitwise, and Canary Capital spearheaded the move, driving $676.49 million in total XRP ETF assets, equivalent to 0.50% of XRP’s circulating supply. The single strongest session saw $243.05 million on November 14, followed by $164.04 million on November 24 and another $21.81 million inflow on November 26. Daily ETF trading volume reached $38.12 million by late November, confirming durable institutional appetite. Meanwhile, Franklin Templeton disclosed holdings of 32.04 million XRP, underscoring active accumulation even as broader crypto liquidity remains tight.

Institutional Accumulation Meets Shrinking Exchange Reserves

Exchange data show Binance’s XRP reserves collapsing to 2.7 billion coins, down 300 million since October, marking one of the steepest monthly declines on record. This represents a structural shift in ownership as ETFs and long-term holders continue pulling XRP off exchanges into regulated custody. Such rapid depletion—at roughly 400 million XRP per month—could trigger a short-term supply shock if ETF inflows persist near $75–80 million in daily turnover, with analysts estimating 20–30 million XRP purchased per day, translating to 4.8 billion XRP annually if sustained. With total daily XRP transaction counts plunging from 1.5 million to 686,000, liquidity has become more concentrated in institutional venues rather than retail exchanges.

ETF Launch Momentum Accelerates With 21Shares and WisdomTree Entry

The launch of 21Shares’ spot XRP ETF next Monday will bring the number of approved U.S. XRP funds to five, with WisdomTree and CoinShares expected to follow. Once all seven funds are live, daily combined ETF volume could surpass $75–80 million, amplifying absorption pressure on available supply. 21Shares, with $2.8 billion AUM, joins major asset managers such as Franklin Templeton ($1.6 trillion) and Grayscale ($31 billion) in creating regulated access points to XRP exposure. Analysts expect that by early 2026, ETF-held XRP could exceed 1% of total supply, consolidating institutional control over a segment of the liquidity previously dominated by offshore exchanges.

Technical Landscape: ETF Demand Battles Weak Network Fundamentals

Despite ETF-driven optimism, on-chain fundamentals remain soft. XRP-USD trades below its 50-day EMA at $2.38, while the RSI remains capped under 50, signaling persistent bearish pressure. The MACD issued a buy signal midweek, yet the move remains fragile without a daily close above $2.28. Analysts identify a short-term resistance band between $2.28–$2.38 and support at $2.10, with further downside limited to $1.85 if ETF inflows sustain. The divergence between strong ETF activity and weak network usage—down 50% in payment volume month-over-month—reflects a structural shift from transactional utility to speculative and institutional custody-based valuation.

Macro and Monetary Policy Context Favors Continued ETF Expansion

The CME FedWatch tool now assigns an 81–85% probability of a 25-basis-point rate cut in December, aligning macro conditions with digital-asset momentum. Fed Governor Stephen Miran and San Francisco Fed President Mary Daly both signaled openness to policy easing, potentially unlocking new liquidity for ETF products. Ripple executives have described the ETF boom as a “structural legitimacy moment” for XRP, framing it as the first regulatory and institutional bridge between crypto settlement layers and traditional finance. The Federal Open Market Committee (FOMC) will meet on December 9–10, and any dovish tone could accelerate institutional rotation toward alternative ETF assets, strengthening inflows into XRPI and XRPR.

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