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- XRP funds saw inflows even as Bitcoin ETF demand slowed
- Ripple’s legal clarity and acquisitions are reshaping sentiment
- Long-term adoption may matter more than short-term price swings
XRP opened 2026 with a sharp move higher, jumping roughly 20% in the first week of January and briefly overtaking Binance Coin to become the third-largest cryptocurrency by market capitalization. For an asset valued near $120 billion, that kind of price action does not go unnoticed. Yet analysts argue the bigger story is not the short-term rally—but the steady institutional interest building behind the scenes.
According to a recent analysis from Altcoin Buzz, XRP-focused investment funds continued to see inflows throughout Q4 2025, even as Bitcoin ETF momentum cooled. The channel described XRP as a “quiet outperformer,” suggesting institutions have been positioning long before the recent breakout.
Regulatory Clarity Changes the Narrative
One of the biggest shifts for XRP came last August, when Ripple officially closed its long-running case with the U.S. Securities and Exchange Commission. That resolution removed a major overhang that had weighed on XRP for years.
Since then, Ripple has expanded its regulatory footprint, securing Money Transmitter Licenses in more than 75 jurisdictions. Its payment infrastructure is already used by roughly 300 banks and financial institutions worldwide. That level of compliance and adoption, built over years, is difficult for newer competitors to replicate quickly.
A $4 Billion Bet on Institutional Finance
Ripple has not slowed down. The company has spent an estimated $4 billion on acquisitions aimed squarely at institutional finance. These include Metaco, a digital asset custody and treasury platform, and Hidden Road, a prime brokerage catering to institutional clients.
Additional purchases, such as Rail for stablecoin-based payments and Palisade for wallet and custody services, further strengthen Ripple’s end-to-end infrastructure. The launch of RLUSD, Ripple’s USD-backed stablecoin, and its Multi-Purpose Token standard for tokenizing real-world assets signal a broader strategy beyond cross-border payments.
Risks Still Linger
Despite improving fundamentals, XRP is not without risks. Ripple still controls a significant portion of the XRP supply through escrow arrangements, and past token sales remain a point of criticism among skeptics. While regulatory pressure has eased substantially, it has not disappeared entirely.
Also Read: Why XRP Is Emerging as One of the Hottest Crypto Trades of 2026
XRP Price Outlook Heading Into 2026
XRP currently trades near $1.93, roughly 49% below its all-time high. Altcoin Buzz describes XRP as “one of the most misunderstood assets” going into 2026, arguing that its strength lies less in short-term trading and more in long-term institutional adoption.
XRP’s early-2026 surge may have grabbed headlines, but its real momentum appears rooted in regulatory clarity, institutional infrastructure, and sustained capital inflows. For long-term investors, consistency—not hype—may be the compounding force to watch.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
