While bitcoin captures the majority of institutional flows, another asset is discreetly resurfacing in portfolios. ETFs backed by XRP have just recorded their first positive weekly inflow in May, reigniting speculation around a return of the Ripple token towards $2. Behind this renewed interest lies a global trend: the gradual return of institutional investors to altcoins via regulated financial products.
In brief
- XRP ETFs have just recorded their first positive weekly inflow of May with $28.17 million injected by investors.
- The return of institutional capital puts XRP back at the center of Wall Street discussions after several more discreet weeks.
- Several analysts now believe that a return of XRP towards $2 remains possible if the current dynamic continues.
- Around 1.26% of the total supply of XRP is now believed to be locked up in ETFs, heightening potential strains on market liquidity.
XRP ETFs Record Best Weekly Flow of May
XRP-backed investment products saw $28.17 million in weekly net inflows, marking “the first and largest weekly inflow recorded by XRP ETFs since the beginning of May”.
This progression contrasts with the more modest performances observed since the beginning of the month and reflects a gradual return of institutional demand. XRP also rose back above $1.40, reinforcing speculation around a broader upward movement.
Some data have particularly caught the attention of the market:
- $28.17 million in weekly net inflows to XRP ETFs;
- 11.28 million dollars injected on the May 6 session alone;
- Canary leads the streams with $7.50 million;
- Bitwise is in second place with $2.68 million;
- Analysts are now considering a return of XRP towards $2 before the end of the month.
The return of institutional capital constitutes a signal particularly monitored by the market, because ETFs today remain one of the main vectors of regulated exposure to cryptos for traditional investors. After several weeks of slowdown, XRP seems to benefit from new momentum fueled by the improvement in overall sentiment on cryptos.
XRP enters a new phase of scarcity
Beyond the weekly rebound in flows, another phenomenon is now attracting the attention of investors: the rapid increase in the quantity of XRP immobilized in ETFs. Around 1.26% of the total supply of XRP is now believed to be locked in these financial products. This development gradually modifies the liquidity structure of the market. Fewer tokens available for sale potentially means more price tension if institutional demand continues.
The cumulative assets of XRP ETFs now reach nearly $1.09 billion. Ripple even cites a projection from JPMorgan estimating that US XRP ETFs could attract between $4 billion and $8.4 billion in their first year of operation.
Investors clearly want to expose their portfolios to XRP. This rise in power of XRP ETFs reflects a change in perception around the asset, long hampered by regulatory uncertainties linked to the dispute between Ripple and the SEC.
If this trend continues, XRP could gradually join the circle of cryptos closely followed by traditional asset managers. Bitcoin and Ethereum still largely dominate institutional flows, but the latest figures show that some investors are now starting to look beyond the two historic leaders. For the market, each new inflow of capital into the XRP ETFs now becomes a strategic indicator capable of influencing both available liquidity and medium-term price expectations.
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