XRP ETFs Break $60M but Why Isn’t XRP Pumping?

XRP ETFs have crossed the $60 million mark in total assets, setting a new milestone for Ripple-linked investment products. Yet XRP’s price refuses to cooperate. No breakout. No sharp rally. Just sideways action that has left traders asking an uncomfortable question. If institutional money is coming in, why is XRP standing still?

At first glance, the numbers look bullish. But crypto markets rarely move on headlines alone.

XRP ETFs hit a record, price stays muted

XRP-linked exchange-traded products have now surpassed $60 million in assets under management. That figure includes products listed in Europe, such as 21Shares XRP ETP and CoinShares XRP offerings.

This matters. ETFs usually signal institutional interest. They lower barriers for traditional investors. Bitcoin and Ethereum saw strong price reactions when their ETF narratives took off.

XRP, so far, has not followed that script.

At the time of writing, XRP continues to trade within a tight range. Volumes remain stable but uninspiring. Momentum indicators show no clear trend.

So what is holding XRP back?

Also Read: As New XRP ETF Launches, Can XRP Break Out Against Bitcoin?

ETF inflows do not equal spot buying

The first misconception is assuming ETF growth directly impacts the spot market.

Most XRP ETFs outside the US are ETPs backed through custodial or derivative structures. That means inflows do not always translate into immediate XRP purchases on open markets.

In contrast, US spot Bitcoin ETFs require direct BTC buying. XRP does not yet have that advantage.

Until a US-approved spot XRP ETF exists, the price impact remains limited.

Legal overhang still clouds sentiment

Despite partial clarity from the Ripple vs SEC case, XRP still carries legal baggage.

In July 2023, a US court ruled that XRP sales on public exchanges did not constitute securities transactions. However, institutional sales were treated differently. Appeals and unresolved remedies remain on the table.

For large funds, uncertainty matters more than headlines.

Many institutions prefer to wait for final regulatory closure before increasing exposure. ETFs offer a safer, contained way to gain XRP-linked exposure without touching the asset directly.

That caution shows up in price action.

Also Read: Can XRP Cross $3 Soon? As New XRP ETF Approved For NYSE Listing

Liquidity rotation favors Bitcoin and Ethereum

Another factor is simple capital rotation.

Bitcoin and Ethereum continue to dominate ETF flows globally. BTC and ETH products absorb the bulk of institutional inflows during risk-on periods.

XRP ETFs, while growing, remain niche by comparison.

When capital concentrates at the top, altcoins often lag. XRP is no exception.

XRP supply dynamics limit upside moves

XRP also faces a structural issue. Supply.

Ripple continues to release XRP from escrow each month, even though a large portion is re-locked. This steady supply acts as a psychological ceiling for traders.

Unlike Bitcoin’s fixed issuance schedule, XRP’s supply mechanics remain a concern for long-term holders.

That does not mean XRP cannot rally. It means rallies need stronger catalysts.

What could finally move XRP?

Several triggers could change the picture.

A US spot XRP ETF filing would be the biggest. Even speculation around it could shift sentiment quickly.

Clear resolution in the Ripple-SEC case would also remove a long-standing overhang.

Beyond that, broader altcoin market strength matters. XRP rarely moves in isolation. It follows liquidity cycles.

For now, XRP ETFs show interest. Not conviction.

That difference explains the price disconnect.

Also Read: On-Chain vs. Off-Chain Transactions: What’s the Difference?

Why are XRP ETFs growing while price stays flat? 

Because most XRP ETFs do not require direct spot buying, limiting immediate price impact.

Are XRP ETFs available in the US? 

No. Current XRP ETFs are listed mainly in Europe and other regions.

Could a US XRP ETF change price action? 

Yes. A spot-based US ETF would likely increase real demand for XRP.

Is the Ripple lawsuit still affecting XRP?

Yes. Partial clarity exists, but unresolved legal issues continue to weigh on sentiment.

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