XRP exchange-traded funds (ETFs) saw strong investor demand in the final week of 2025, despite the token’s price struggles.
During that period, XRP spot ETFs experienced $64 million in net inflows, surpassing other major crypto ETFs. In contrast, Ethereum spot ETFs faced $102 million in net outflows, while Solana ETFs attracted $13.14 million with all listed SOL funds showing gains.
Even with significant inflows, XRP has remained below $2, prompting investors to question why the price isn’t rising despite the influx of funds.
Why ETF Inflows Don’t Always Result in Immediate Price Gains
Bitwise Chief Investment Officer Matt Hougan recently shed light on the workings of ETF buying behind the scenes.
When XRP ETFs receive inflows, fund managers don’t directly purchase tokens on public exchanges. Instead, they acquire XRP over the counter (OTC) from institutional market makers like Jane Street, Susquehanna, and Goldman Sachs.
These market makers compete to offer the best prices for large orders, sourcing XRP from the broader market and delivering it to the ETF’s custodian once a deal is struck.
In essence, while the buying process impacts the spot market, it happens indirectly and gradually, rather than through visible exchange orders that immediately drive prices up. This method can dampen short-term price surges even with substantial inflows.
Technical Pressure Continues to Affect XRP
Despite strong ETF demand, technical analysts caution that price movements are sending mixed signals.
XRP is approaching a potential monthly close below a crucial support level for the first time this year. Analysts emphasize the importance of XRP closing above $2.08 by month-end to maintain a bullish outlook.
“If in doubt, zoom out,” as one analyst puts it, emphasizing that price action remains the ultimate indicator of market strength.
