XRP ETFs Show Strong Performance Against BTC and ETH Amid Declining Inflows
Despite seeing a decrease in inflow levels, XRP ETFs significantly outperform Bitcoin and Ethereum funds in the market.
It has been over a month since the first US-based XRP ETF, providing complete exposure to the asset, began trading on Wall Street, achieving remarkable figures. Despite a noticeable slowdown in net inflows recently, XRP ETFs maintain a streak of profitable days, outperforming Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) counterparts.
Ongoing Success
Canary Capital’s XRPC launched on November 13, breaking trading volume records with approximately $60 million and attracting over $240 million in daily net flows. Following XRPC, four additional XRP ETFs entered the market, leading to a cumulative net inflow exceeding $1 billion during this period.
Notably, there hasn’t been a single day of net outflow from XRP ETFs. Some days reported less than $10 million in net inflows, but the positive trend has continued more than a month after XRPC’s introduction. This performance contrasts sharply with both Bitcoin and Ethereum ETFs, which failed to achieve similar success after their launches in January and July 2024.
Since the launch, Ethereum ETFs have suffered a loss nearing $1 billion, with total inflows dropping from $13.57 billion to $12.64 billion by mid-December. Bitcoin funds also experienced a shrink in net inflows from $60.21 billion to $57.27 billion.
In contrast, XRP ETFs attracted $1 billion, while Ethereum funds lost almost the same amount, and Bitcoin funds saw $3 billion diminish.
XRP Faces Challenges
Analyzing the debut month of XRP ETFs reveals a significant difference between high inflows and the underlying asset’s performance. On the day XRPC launched, Ripple’s token traded well above $2.50 but quickly lost value, dropping below the $2.00 mark several times since.
This decline can partly be attributed to the overall market downturn and actions by major investors. Insights from Ali Martinez indicate that significant market players sold nearly 1.2 billion tokens over the past month, resulting in XRP falling below $1.92 and raising concerns of a potential drop to $1.00.
