Ripple's XRP has surged to prominence in the US crypto ETF market, outperforming other major assets that experienced significant downturns. Brad Garlinghouse, CEO of Ripple, announced via X that XRP has become the fastest cryptocurrency spot ETF to surpass $1 billion in assets, excluding Ethereum. This remarkable achievement occurred in less than four weeks following its launch.
The global digital assets market is currently in a recovery phase after enduring one of the most severe sell-offs in its history. The total cryptocurrency market capitalization has risen by approximately 3% over the past 24 hours, reaching $3.12 trillion. While Bitcoin and Ethereum have seen gains of 6% and 14% respectively in the last seven days, XRP has managed a more modest increase of 4%. Despite these gains, investor sentiment, as indicated by the Fear and Greed index, remains in a state of "Fear."
Ripple Flags Rising Demand for Regulated Products
In a post on X, Ripple CEO Brad Garlinghouse highlighted that the surge in XRP ETF inflows signifies "pent-up demand" for regulated investment products. With institutions like Vanguard expanding access to crypto ETFs within traditional retirement and brokerage accounts, Garlinghouse posited that digital assets are now reaching a broader spectrum of investors. These new investors, he noted, do not need to be technological experts to participate in the market.
He further elaborated that traits such as longevity, stability, and community, often overlooked during the speculative phases of cryptocurrency, are proving increasingly vital for this emerging class of "off-chain" holders. This development challenges narratives primarily built on hype and speculation.
The initial week of December provided a clearer view of the crypto ETF market's performance. Bitcoin and Ether ETFs experienced declines as volatility impacted mid-week trading. In contrast, Solana and XRP funds continued to steadily build momentum.
US Bitcoin ETFs recorded net outflows totaling $87.77 million between December 1st and 5th. BlackRock's IBIT saw fluctuations between substantial inflows and redemptions, ultimately ending the week with a net decrease of $48.99 million. Fidelity's FBTC, however, logged inflows of $61.96 million, and Bitwise's BITB added $9.3 million.
ARK and 21Shares' ARKB experienced the largest weekly outflow, amounting to $77.86 million. Grayscale's GBTC lost an additional $29.77 million, while its newer Bitcoin Mini Trust saw a minor decrease of $411,000. Despite these outflows, trading volumes remained robust at $22.57 billion, suggesting that investors are primarily repositioning their assets rather than exiting the market entirely.
XRP ETFs Lead with Significant Inflows
Ether ETFs performed similarly, with net outflows of $65.59 million during the same period. BlackRock's ETHA was responsible for nearly all of these withdrawals, accounting for $55.87 million. This outflow was partially offset by a strong showing from Fidelity's FETH, which attracted $35.5 million. Grayscale's Ether Mini Trust added $7.51 million, though ETHE recorded outflows of $53.17 million.
Solana presented a more positive trend, with its ETFs garnering net inflows of $20.3 million. Bitwise's BSOL was a standout performer, attracting $65.11 million. Fidelity's FSOL, Grayscale's GSOL, and other issuers also concluded the week with positive inflows, although 21Shares' TSOL experienced some negative performance.
The week's most notable performance came from XRP. The new suite of spot XRP ETFs accumulated $230.74 million in inflows, extending their winning streak to a fourth consecutive week. Grayscale's GXRP led the pack with $140.17 million in inflows, followed by Franklin Templeton's XRPZ with $49.29 million. Bitwise and Canary Capital contributed $21.1 million and $20.19 million, respectively.
Since their launch on November 14th, XRP ETFs have attracted a total of $897.35 million across 15 consecutive days of inflows. This impressive surge places them among the fastest-growing cryptocurrency-asset ETFs ever introduced. Despite the strong ETF performance, the XRP price has seen a 9% decrease in the last 30 days. At the time of this report, XRP is trading at an average price of $2.07.