XRP exchange-traded funds (ETFs) are on the brink of reaching $1 billion in total assets, propelled by a surge in institutional interest. Ripple CEO Brad Garlinghouse commented that the current growth is just the beginning for the crypto ETF market, which he believes remains in its nascent stages.
In recent weeks, more than $700 million has flowed into XRP ETFs, illustrating significant pent-up demand for cryptocurrency exposure. Garlinghouse noted that institutions, which were previously hesitant due to regulatory uncertainties, are now increasingly entering the market. This shift is reflected in the activity on Ripple”s prime-brokerage platform, where institutional clients are progressively expanding their crypto investments.
The momentum surrounding XRP ETFs continues to escalate as major players in traditional finance engage with cryptocurrency. Recently, Vanguard introduced a comprehensive suite of XRP spot ETFs on its platform, marking a notable change in its historically cautious stance towards crypto products. Analysts suggest that this development could have a similar impact on digital assets as gold ETFs have had on precious metals.
Currently, XRP ETFs are reported to hold $906.46 million in assets, which includes approximately $874.28 million in net inflows over the previous two weeks. Notably, these ETFs have experienced zero outflows since their inception, indicating robust confidence among investors.
The recent influx of investments showcases strong demand, with significant contributions from firms such as Canary Capital, Grayscale, Bitwise, and Franklin. Just last Wednesday, XRP ETFs received an additional $50.27 million in new investments. Furthermore, 21Shares has achieved approval for a spot XRP ETF on the Cboe BZX, with trading expected to commence soon, further expanding the roster of available XRP ETF offerings.
As the landscape of cryptocurrency investments evolves, Brad Garlinghouse sees the rapid growth of XRP ETFs as part of a broader trend. He asserts that the crypto ETF market is still in its infancy and anticipates continued expansion in the future.
