XRP Emerges as Dominant Player in US Crypto ETF Market
XRP has taken the lead in the race for supremacy among altcoins in the US crypto exchange-traded fund (ETF) market, showcasing record-breaking performance in recent weeks.
Within just 10 trading days, the latest batch of US spot XRP ETFs has attracted total inflows of around $587 million, surpassing the approximately $568 million seen for Solana ETFs during the same period.
This surge has reshaped the landscape of the sector, positioning XRP as the top choice for investors seeking exposure to non-Bitcoin and Ethereum assets in a market that has been primarily characterized by outflows and defensive strategies.
Solana vs XRP ETFs
Initially, Solana ETFs had taken the lead in the sector. Since their debut on Oct. 28, US spot Solana ETFs had seen 20 consecutive days of net inflows, totaling about $568 million. This pushed the total assets of the funds to $840 million, equivalent to approximately 1% of the token’s market capitalization.
However, XRP quickly turned the tables on this narrative. By Nov. 21, US spot XRP products had already gathered $423 million. The entry of heavyweights Grayscale and Franklin Templeton on Nov. 24 triggered a significant capital influx, adding around $164 million in net creations in a single session.
This propelled the cumulative total of the XRP complex to approximately $587 million, surpassing Solana’s month-long inflows in nearly half the time. On a capital-intensity basis, XRP is now attracting institutional investment at almost double the daily rate of its competitor.
The Race to Zero
The rapid shift in momentum is being driven by a competition to offer the lowest costs. Franklin Templeton has set a new industry benchmark with its XRPZ fund, which carries a 0.19% sponsor fee that is fully waived on the first $5 billion in assets until May 31, 2026.
For institutional investors and model portfolios focused on minimizing fees, XRPZ effectively becomes a zero-cost investment for the next six months. Grayscale’s GXRP has also adopted a similar strategy, waiving its standard fees for the initial three months.
This aggressive pricing model coincided with a surge in demand. The $164 million increase on Nov. 24 indicates that a significant amount of capital was waiting for these low-cost, reputable ETFs to launch before being deployed.
While Solana ETFs also employed fee waivers, the scale of Franklin’s $5 billion cap seems to have unlocked a larger wave of institutional flow immediately upon listing.
Momentum vs. Gravity
A key divergence between Solana and XRP lies in how inflows are impacting price action. Solana’s $510 million in inflows occurred amid a 30% price correction from recent highs. In this context, ETF flows have acted as a buffer, absorbing selling pressure from existing holders but failing to reverse the downtrend.
In contrast, XRP inflows are fueling a price breakout. Despite a 17% drawdown in the last 30 days, XRP surged approximately 10% following the Nov. 24 session, breaking above $2 and reaching as high as $2.27. On-chain analysis from Glassnode points to this level as a significant psychological zone where long-term holders typically sell to recoup losses from early 2025.
Historically, this supply zone has capped rallies. However, the consistent daily inflows of $50 million to $100 million into XRP ETFs are creating a demand buffer that can absorb legacy supply, turning a previous resistance level into a new accumulation floor.
The Path to $2 Billion?
With four issuers now live and the $500 million milestone achieved in under 15 trading days, market experts are revising their year-end predictions for XRP.
The current growth rate puts XRP on track to surpass many analysts’ expectations for non-Bitcoin assets. If the trend of daily inflows stabilizing in the $40 million to $60 million range continues after the initial hype, the XRP complex could reach the $1.5 billion mark by the end of the year.
However, an optimistic scenario is emerging. If the fee waivers from Franklin Templeton attract registered investment advisors (RIAs) and the trend of moving away from underperforming assets persists, the complex could potentially reach $2 billion in assets under management (AUM) before the end of 2025.
