New Data Shows Institutions Are Choosing XRP Over Bitcoin and Ethereum

Emergence of Spot XRP ETFs and Initial Market Reception

Spot XRP Exchange-Traded Funds (ETFs) are now actively trading in the United States and several major international markets. A variety of issuers, including 21Shares, Franklin Templeton, Bitwise, and Canary Capital, have launched spot XRP products. These new offerings complement earlier Exchange-Traded Products (ETPs) available in Europe from Valour. Within just a few weeks of their launch, the combined assets under management for these US-based XRP products have rapidly approached the $800 million to $1 billion range. This impressive pace positions XRP among the fastest-growing altcoin ETF categories observed in 2025.

The current wave of ETF inflows is particularly noteworthy, given XRP's history of navigating periods of market uncertainty in past cycles. The significant capital commitment to these new products suggests a broad market confidence, even amidst fluctuating cryptocurrency prices and ongoing profit-taking across the sector. This sustained demand for XRP ETFs raises a critical question that analysts are actively exploring: are institutions gradually shifting their allocation preferences towards XRP over established digital assets like Bitcoin and Ethereum?

Analyst Reactions to Spot XRP ETF Data

Financial analysts have been closely monitoring the inflow data since the inception of spot XRP ETF trading. According to insights from Jungle Inc Crypto News, institutional investors typically do not publicly declare their investment strategies. Instead, the movement of capital serves as a direct indicator of their intentions. The analyst points to recent data revealing that spot XRP ETFs attracted approximately $750 million within a short timeframe. This figure reportedly surpasses the combined inflows observed for Bitcoin and Ethereum ETFs during the same period.

While this initial comparison might appear striking, the analyst cautions that the observation window is relatively small, and the outflows from Bitcoin and Ethereum ETFs can widen the perceived gap. Furthermore, the analyst notes that the XRP price has not experienced a significant surge commensurate with the strength of these inflows, which adds another layer of intrigue to the data. This dynamic is particularly interesting because the flows occurred during a relatively quiet market period, without any prominent catalysts to explain such a strong reaction.

Jungle Inc emphasizes that net capital flow is the primary metric that major institutional allocators rigorously follow. The analyst posits that recent trading activity suggests Wall Street might be strategically rotating into XRP ETFs while broader market attention is directed elsewhere. This trend, according to the analyst, is not driven by speculative hype or wishful thinking but rather reflects the kind of strategic behavior observed when funds begin to explore new investment narratives before they become widely recognized by retail investors.

Interpreting Institutional Behavior Through ETF Data

Institutional investment decisions often manifest as gradual, deliberate actions rather than overt pronouncements. The increasing inflows into XRP ETFs could signal early-stage positioning ahead of a more significant shift in overall allocation patterns. The analyst suggests that even if the current rate of inflows moderates or halves, XRP could find itself in a new competitive landscape. This scenario could involve banks, brokerages, pension funds, and algorithmic trading firms beginning to treat XRP as a macro asset rather than solely a speculative altcoin.

The potential for such a shift is a key reason why this trend has garnered considerable attention. For years, market participants have drawn parallels between Bitcoin and Ethereum and traditional financial instruments. XRP, however, has less frequently been included in these large-scale discussions, partly due to its varied performance in past market cycles. The emergence of new ETF flows introduces a novel perspective, indicating that specific segments of Wall Street are actively exploring XRP exposure at a time when sentiment towards other major digital assets remains mixed.

The analyst stresses that it is still premature to definitively label this trend as a long-term directional shift. A few weeks of strong inflows are insufficient to override years of established market structure. However, the significance of this signal lies in the fact that institutions have shown interest in XRP, even if only for a brief period. This interest arrived somewhat unexpectedly, as the narrative had not been widely anticipated or priced in by many market analysts.

Assessing XRP's Potential as a Top Institutional Choice

The central question arising from this development is whether institutions are actively choosing XRP over Bitcoin and Ethereum. The interpretation of this early ETF behavior is key to answering this. The current inflows demonstrate substantial interest within a concentrated period, and the concurrent outflows from Bitcoin and Ethereum ETFs further amplify the contrast. However, the absence of a significant price breakout suggests that the broader market remains cautious despite the observed fund activity.

The available data does not conclusively indicate that institutions have entirely abandoned Bitcoin or Ethereum. Nevertheless, it strongly suggests that XRP has entered a new investment category that few had predicted at the beginning of the year. The strength of these inflows places XRP prominently in discussions surrounding institutional allocation strategies. This trend could either diminish if subsequent reporting periods show softer inflows or expand if new funds continue to increase their exposure to XRP.