While major cryptocurrency funds tied to Bitcoin and Ethereum grapple with significant capital withdrawals, a contrasting trend is emerging for XRP. Institutional investors have been consistently adding the digital asset to their portfolios for over a month, creating a notable divergence between investment flows and its market price. The persistent question is why XRP continues to trade below the $2 threshold despite this sustained institutional interest.
Unbroken Demand in ETF Products
Data from U.S.-listed spot XRP exchange-traded funds reveals a clear pattern of accumulation. These funds have recorded net inflows for 30 consecutive trading days since their launch. As of December 16, 2025, cumulative inflows have reached approximately $991 million, with total assets under management surpassing $1.18 billion.
This institutional embrace was bolstered in early December when Vanguard granted access to XRP ETFs for its expansive client base of over 50 million investors. Among the funds, Franklin Templeton’s XRPZ product recently led daily inflows, attracting $8.7 million. Firms like Canary Capital and Grayscale are also continuously absorbing supply through over-the-counter channels, with estimates suggesting they are acquiring around 1% of the available circulating supply.
Ripple CEO Brad Garlinghouse has highlighted that this demand has made XRP the second-fastest crypto asset to cross the $1 billion mark in ETF assets. This steady institutional accumulation stands in stark contrast to the concurrent outflows observed in Bitcoin and Ethereum investment vehicles.
Derivatives Launch Fails to Spark Retail Momentum
The launch of spot-quoted XRP futures by the CME Group on December 15 introduced a new contract size of 250 units. While this development grants the asset further legitimacy and creates fresh arbitrage opportunities for sophisticated traders, it did not trigger a wave of enthusiasm among retail participants.
Should investors sell immediately? Or is it worth buying XRP?
Current open interest for XRP futures contracts sits at $3.71 billion. This figure remains well below the all-time high of $10.94 billion recorded in July, indicating that while institutional players are establishing calculated positions, smaller investors are exhibiting caution.
Thin Order Book Limits Price Appreciation
Despite the backdrop of institutional support, XRP’s price has struggled to sustain a break above $2, oscillating between $1.89 and $1.99. Recent macroeconomic headwinds, including rising Japanese bond yields, have applied additional pressure.
A key factor restraining sharper price gains is a lack of liquidity in the $1.90 to $2.00 range. The market’s vulnerability was demonstrated late last year when a single sell order of $20 million precipitated an 18% price decline. Critical support is currently identified at $1.95; a sustained drop below this level could see the asset test support near $1.82.
Ecosystem Development Continues Apace
Separate from price action, Ripple’s infrastructure ecosystem is expanding. On December 15, Hex Trust launched Wrapped XRP (wXRP) on the Ethereum and Solana blockchains, backed by $100 million in initial liquidity. Looking ahead to 2026, Ripple plans to extend the reach of its RLUSD stablecoin—which currently has a volume of $1.3 billion—onto Ethereum Layer-2 networks including Optimism, Base, and Unichain.
For now, XRP appears trapped in a consolidation phase, influenced by the delayed U.S. market structure legislation now expected in early 2026 and broader external economic factors. The disconnect between steady institutional accumulation and a stagnant spot price is likely to persist until the wider digital asset market regains momentum or substantial liquidity enters the order book.
Ad
XRP Stock: Buy or Sell?! New XRP Analysis from December 16 delivers the answer:
The latest XRP figures speak for themselves: Urgent action needed for XRP investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 16.
XRP: Buy or sell? Read more here...