XRP’s New Spot ETF Draws Big Early Interest — A Strong Start, But Still Small Next to Bitcoin and Ethereum

Quick snapshot: Where the XRP ETF stands after launch

The new XRP (XRP) spot ETF has made a loud entrance. Public trackers and industry reports show total net inflows sitting near $900 million in the first weeks after launch — a clear sign of real investor interest rather than a one-off pop. That inflow pace put the product among the faster-growing crypto ETFs in its opening stretch.

But context matters. Bitcoin (BTC) and Ethereum (ETH) spot ETFs, which launched earlier, still dominate the landscape in size and daily trading volume. The XRP ETF’s start is impressive for a single token product, especially one that’s returning to the mainstream after years of regulatory noise, but it remains far smaller than the BTC and ETH families in raw assets under management and liquidity.

Net flows, AUM and short-term returns: how XRP stacks up to BTC and ETH

Concrete picture: trackers reported total net inflows into the XRP spot ETF of about $900 million through early December 2025. Those inflows arrived steadily rather than all at once, with several days of large subscriptions followed by quieter sessions — a pattern that suggests both retail and some institutional demand.

For comparison, the largest Bitcoin (BTC) spot ETFs hold assets measured in the tens of billions of dollars; Ethereum (ETH) spot ETF families sit in the single-digit to low double-digit billions range. That means the XRP ETF’s $900 million is a small slice of the total crypto ETF market — roughly a low-single-digit percentage of the ETH complex and a fractional share of BTC ETF assets.

Short-term price returns for XRP since the ETF started have outpaced many altcoins, with the ETF-related demand contributing to a noticeable uplift in spot prices. Daily and weekly returns have varied, but inflows have generally matched days of positive price moves for XRP and amplified volatility on headline news days. Caveat: volume and bid-ask spreads for the XRP ETF remain wider than for BTC/ETH ETFs, so execution costs can be higher for large trades.

Source dates: inflow figures reflect industry reporting through early December 2025. AUM comparisons use public ETF dashboards and provider disclosures from the same window; timing differences between providers mean direct apples-to-apples comparisons require caution.

Why investors are buying XRP ETFs now: regulation, fees and liquidity

Three factors explain the rush into XRP products. First, regulatory clarity: recent rulings and settlements narrowed legal uncertainty for XRP, clearing a major barrier that kept some institutional buyers on the sidelines. That alone can flip sentiment quickly in crypto markets.

Second, ETF structure and fees. A spot ETF that offers direct exposure to the token — instead of a futures-based product — is simpler for many investors. Where XRP ETF fees are competitive, the lower ongoing drag attracts yield-sensitive buyers who want pure token exposure without futures roll costs.

Third, market positioning and liquidity. XRP’s market cap and existing exchange liquidity let an ETF accumulate inventory without wildly distorting the market, at least at the current scale. Some asset managers and trading desks have signaled allocation to XRP as a portfolio diversifier within crypto, which can create a self-reinforcing cycle: ETF buys lift price, which attracts more flows.

But there are limits. The XRP market is smaller and more prone to sudden swings than BTC and ETH. Large institutional bids or redemptions can create sharper price impact. And fee differences between ETF issuers, plus custody choices, will matter a lot for which products gather the most persistent assets.

Correlation and risk: how XRP moves against Bitcoin and Ethereum in different market regimes

Since the ETF launch, XRP’s price moves have shown higher correlation with BTC and ETH during broad market rallies and crashes — a classic sign that investors treat crypto as a single risk asset when sentiment shifts. In steady markets, though, XRP often diverges more: token-specific news and liquidity flows drive outsized moves relative to BTC and ETH.

Implication: in a risk-on leg higher for crypto, XRP is likely to rise with the market and may outperform on momentum. In a broad sell-off, however, it can drop faster because liquidity is thinner. Regulatory shocks focused on Ripple or secondary markets would widen the gap further and could see XRP underperform sharply.

Portfolio implications: tactical considerations for allocating to XRP, BTC and ETH ETFs

For investors building a crypto ETF sleeve, the XRP ETF looks like an active, higher-risk tilt rather than a core holding. The strong launch signals demand, but the product’s smaller scale and wider spreads argue for a modest position size — think of it as a tactical allocation inside a broader crypto allocation dominated by BTC (BTC) and ETH (ETH).

Practical moves: favor ETF issuers with clear custody setups and deeper market-making; watch fee schedules and creation/redemption mechanics; expect higher short-term volatility and plan position sizing accordingly. Rebalancing should be more frequent if XRP is a tactical overweight, because the token can swing quickly against a BTC- or ETH-heavy baseline.

Overall view: positive for XRP holders and for diversification within crypto, but higher risk and execution cost mean this is a product for investors who accept more volatility in return for potential upside.

Data appendix: sources, dates and how we calculated flows and AUM

Primary inflow figure for the XRP spot ETF (~$900 million) comes from industry reporting and market trackers covering the ETF launch through early December 2025. Comparative AUM context for BTC and ETH uses public ETF dashboards and provider disclosures from the same early-December window. Where exact timestamps differ between providers we used end-of-day snapshots; totals are rounded to reflect reporting lags. Live metrics can be followed on provider dashboards and institutional ETF monitors; note that figures change intraday and across venues.

Photo: Karola G / Pexels

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