XRP ETFs Surpass $60M AUM Despite Price Decline

XRP ETFs Reach $60 Million AUM

  • XRP-linked exchange-traded funds (ETFs) have accumulated around $60 million in assets under management by December 17, despite XRP's spot price dropping.
  • Currently, XRP is trading at approximately $1.86, marking an 8% decline over the past week.

Understanding ETF Flows

  • ETF shares trade like regular stocks during market hours, but fund managers process net flows post-market, affecting how quickly these impact the spot market.

Institutional Decision-Making

  • Institutional investments involve lengthy processes, with large funds taking time for checks and approvals, leading to gradual capital allocations.

XRP Price Action

  • XRP has experienced a 12% decline in the past month, currently testing support between $1.80 and $1.90.
  • A drop below $1.80 could shift focus to lower support levels at $1.60 and possibly $1.30-$1.40.

ETF Growth Context

  • Despite reaching $60 million, XRP ETF growth remains small compared to larger crypto ETFs, potentially limiting immediate market impact.

Non-Empty XRP Wallets Increase

  • The number of non-empty wallets on the XRP Ledger is rising, suggesting accumulation amid the price dip.

Market Implications

  • Mixed signals persist: ETF AUM growth indicates increasing institutional interest, while price action advises caution.
  • Traders are monitoring whether end-of-day ETF purchases will influence spot market demand and if the $1.80 support level will hold.