U.S. spot XRP (CRYPTO: XRP) ETFs are about to cross $1 billion in net inflows, a milestone they are set to hit just over two weeks after launch. This surge comes even as spot Ethereum ETFs quietly notched more than $50 million in outflows over the same period, creating a sharp divergence in fund flows.
The split offers one of the clearest real-time tests of how regulatory confidence shapes institutional behavior in digital-asset markets. As noted by Mati Greenspan, founder of Quantum Economics, and reported by CoinDesk, these movements highlight the market’s sensitivity to the regulatory landscape.
Also Read: How Ripple Secured Wall Street Backing For Its Massive $500 Million Raise
Legal Certainty Powers XRP’s Rise
Since its inception in November, XRP funds have had 15 consecutive days of inflows, accumulating close to $900 million from institutional investors. Funds managed by Grayscale, Bitwise, Canary Capital and Franklin Templeton are leading the charge, per SoSo Data.
Analysts say that’s less about a sudden revival of interest in XRP’s underlying technology, and more about the market reacting to the one thing institutions love more than yield: clarity. The August court ruling declaring that XRP is not a security, while still fining Ripple for earlier violations, swept away years of uncertainty.
OTC desks have been the quiet supporting actor of the show, too. Their liquidity has tempered inflows even during broader crypto sell-offs that tested bitcoin and ether ETF markets, providing more stable ground on which XRP could accumulate.
Ethereum ETFs Face Mixed Signals
The contrast could not be sharper. While XRP ETFs sprint toward a billion-dollar landmark, U.S. spot Ethereum ETFs saw $51.7 million in net outflows last week, according to TraderT data. BlackRock’s iShares Ethereum Trust ETF (NASDAQ:ETHA) led the retreat with more than $60 million in redemptions, partly offset by a $53 million inflow into Fidelity’s FETH.
Trading activity in ETH ETFs remains solid – around $8 billion in weekly turnover – but investors appear undecided. Ethereum still struggles with an unresolved regulatory wrinkle: whether staking-related products fall under securities rules. That’s a lingering question that keeps parts of the institutional market cautious, even as ETH holds steady around the $3,000 level.
Data from Farside Investors show a divergence in investor confidence, as outflows were not uniform across all funds, highlighting the volatile nature of Ethereum ETFs.
The Bottom Line
Both assets now boast SEC-approved spot ETFs. But only one has the sort of regulatory clarity institutions crave-and the inflow gap shows it. In crypto’s current phase of institutional adoption, certainty is beating out ecosystem strength, at least for the time being. Ethereum may well regain momentum once its volatility winds shift-but today, the market’s message is unmistakable: clarity is king, and XRP has it.
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