XRP's Curious Case: Institutional Capital Pours In, But Price Remains Grounded
Despite a torrent of institutional capital flowing into XRP exchange-traded funds (ETFs) and an undeniable surge in bullish retail sentiment, the cryptocurrency's spot price inexplicably remains locked around the $2 mark. This perplexing divergence raises critical questions for investors and market observers alike, highlighting a unique dynamic within the crypto landscape.
Institutional Appetite for XRP Surges Amidst ETF Dominance
Institutional investors are demonstrating a relentless appetite for XRP, primarily channeled through Spot XRP ETF products. These funds have now witnessed an impressive 19 consecutive days of inflows, with a significant additional $20.17 million bolstering their coffers just recently. This consistent demand has pushed cumulative inflows to an astonishing $990.91 million, nearing the monumental $1 billion threshold. Consequently, the total assets under management (AUM) for these XRP ETFs have soared past $1 billion, currently sitting at $1.18 billion. This robust institutional accumulation stands in stark contrast to other major cryptocurrencies, with Spot Ethereum ETFs, for instance, recording $19.41 million in outflows last week. This pattern suggests a deliberate and sustained effort by large entities to build exposure to XRP through regulated channels.
Bullish Social Sentiment Yet to Translate to Price Action
Adding another layer to this enigma is the overwhelmingly bullish sentiment radiating from retail participants. Market intelligence firm Santiment reports a noticeable uptick in positive commentary surrounding XRP across prominent social platforms like X, Telegram, Reddit, and Discord over the past week. In fact, the previous week registered as the seventh most bullish sentiment week for XRP throughout 2025. Typically, such a potent combination of strong institutional inflows and soaring retail optimism would herald a significant price breakout. However, XRP has remained stubbornly range-bound around $2. This suggests that persistent sell-side pressure from existing holders is effectively absorbing the incoming demand, preventing a decisive move upwards. For XRP's price to truly reflect this burgeoning interest, daily ETF inflows would likely need to consistently reach hundreds of millions of dollars, transforming the current accumulation into a powerful upward momentum.
