XRP ETFs Pull in $130M: What’s Next for XRP’s Price?

Andrew Chen
XRP

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  • Grayscale and Franklin Templeton’s XRP ETFs raised $130M, pushing total AUM to $778M.
  • Strong ETF demand is driving XRP token absorption and potentially influencing price recovery.
  • XRP’s technical outlook shows a bullish flag but faces resistance at $2.20; sustained ETF inflows are key.

The launch of XRP exchange-traded funds (ETFs) has sent ripples through the cryptocurrency market, with nearly 80 million XRP tokens absorbed in just 24 hours. Grayscale and Franklin Templeton’s XRP ETFs alone raked in a combined total of $130 million during their debut on November 24. As of today, the total assets under management (AUM) for XRP ETFs have soared to $778 million, reflecting a strong initial response and signaling robust market interest.

Rapid Growth of XRP ETFs

In a remarkable showing, Grayscale’s GXRP absorbed $67.4 million, while Franklin Templeton’s XRPZ brought in $62.6 million, pushing the total value of XRP ETFs past the $628 million mark on launch day. These rapid inflows have significantly outpaced Solana’s recent ETF debut, indicating an overwhelming demand for XRP-based products.

With the addition of products like Canary’s XRPC, which has $331 million in cumulative net inflows, and Bitwise’s XRP ETF, which has drawn $168 million, the XRP ETF market is poised for even further growth. The inflow trends suggest strong institutional interest and a growing appetite for exposure to XRP through more traditional investment vehicles.

ETF Demand and XRP’s Market Dynamics

The key factor driving XRP’s growth is its sustained ETF demand. As more investors buy into XRP ETFs, this directly impacts the circulating supply of XRP tokens, potentially leading to upward price pressure. The concept of “FOMO”—fear of missing out—could amplify this trend, creating a self-reinforcing cycle where increasing ETF demand drives higher XRP prices.

However, experts like Chad Steingraber caution that while initial demand is high, long-term price recovery will depend on the continuation of inflows. Sustained ETF buying pressure could act as a catalyst for XRP’s price recovery, turning the ETFs into influencers of broader market trends.

Technical Outlook: Bullish Flag Forms Amid Bearish Trend

On the technical side, XRP is showing signs of a bullish flag pattern, which suggests a potential breakout toward the $2.35–$2.45 price range. XRP’s recent recovery from a $1.90 low to $2.20 demonstrates strong short-term demand, with resistance looming at the $2.20 level. Yet, XRP’s position below the key 50, 100, and 200 exponential moving averages (EMAs) hints at a larger bearish trend, raising questions about its ability to sustain upward momentum in the short term.

Also Read: Franklin Templeton Launches XRPZ ETF: Regulated Access to XRP

Despite these concerns, the relative strength index (RSI) remains above 50, suggesting continued buying pressure. The ultimate test for XRP’s price will be whether it can break through the $2.20 resistance level and maintain bullish momentum.

XRP’s ETF market debut has generated significant enthusiasm, and if the current inflow trends continue, XRP could be positioned for a sustained recovery. However, the cryptocurrency’s future performance will depend on whether these inflows remain robust and whether XRP can break key technical resistance levels. Investors and market watchers alike will be keeping a close eye on upcoming ETF launches, such as 21Shares’ TOXR, expected on November 29, which could further fuel the demand for XRP.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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