XRP ETFs have made history with a $58 million trading volume in their first days. Despite institutional enthusiasm, Ripple's price hasn't surged as expected. What's causing this discrepancy? A deep dive into a puzzling situation in the crypto market.
The launch of XRP ETFs in the United States has generated $58 million in volume, a figure that demonstrates genuine institutional appetite for this asset. These financial products allow traditional investors to gain exposure to XRP without having to directly manage the technical aspects related to holding cryptocurrencies. This accessibility represents a major democratization lever.
However, despite these significant capital inflows, the XRP price remains stable for now, oscillating within a narrow range. This situation may come as a surprise when we observe the impact that Bitcoin and Ethereum ETFs had on their respective underlying assets. BTC reached new highs after the approval of spot ETFs, while ETH experienced a similar bullish momentum, though less explosive.
Several factors explain this delay. First, the very structure of the XRP market: a significant portion of tokens remains held by Ripple Labs, which may limit short-term volatility. Additionally, ETF flows typically take several weeks before translating into significant buying pressure on the spot market. ETF issuers don’t necessarily purchase the entirety of tokens on day one.
The recent history of crypto ETFs shows that price impact rarely manifests immediately. Bitcoin ETFs experienced a consolidation phase of several weeks before the market fully reacted. Institutional investors adopt a gradual approach, building their positions progressively to avoid disrupting the market.
On-chain data reveals that trading volumes on centralized exchanges have increased notably since the ETF launch, but without creating a major imbalance between supply and demand. This relative stability could actually be a positive signal: it indicates that the market is absorbing these new flows without panic or excessive euphoria.
The regulatory context also plays a crucial role. The progressive clarification of XRP’s legal status in the United States, particularly after positive developments in the litigation between Ripple and the SEC, has created a more favorable environment. Institutional investors, particularly sensitive to regulatory risk, can now consider XRP allocation with greater confidence.
From a technical analysis perspective, XRP currently finds itself in a consolidation phase just below a key resistance around $2.50. A breakout above this level could trigger bullish acceleration, amplified by ETF flows. Momentum indicators remain neutral, suggesting that silent accumulation is underway.
The adoption of RippleNet technology by financial institutions continues to progress, with several major banks integrating Ripple’s cross-border payment solutions. This real utility distinguishes XRP from many other crypto assets and constitutes a solid fundamental for medium-term appreciation.
Patience will likely be rewarded. The experience of Bitcoin ETFs and Ethereum suggests that a delay of several months between launch and maximum price impact is not unusual. XRP investors who understand this dynamic may see the current phase as an accumulation opportunity before the market fully reevaluates the impact of these new institutional flows.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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