XRP News Update: Institutional Interest Soars as XRP ETFs Lead to Tightening Supply

The

market is experiencing a significant transformation as institutional interest intensifies, fueled by the introduction of several spot XRP ETFs and a surge of inflows that have surpassed initial forecasts. Franklin Templeton's XRPZ and Grayscale's made their debut on November 24, 2025, while Bitwise's offering , highlighting strong demand for regulated investment vehicles. These ETF launches coincided with XRP's , marking a 1.52% increase over 24 hours as buyers returned after the token tested crucial support zones.

Investment into XRP ETFs has

, and total assets now above $628 million, indicating a notable change in institutional strategies. This uptick is following the conclusion of Ripple's lengthy legal dispute with the U.S. Securities and Exchange Commission, which clarified that XRP traded on public platforms is not considered a security. Experts point out that the ETF model—requiring actual XRP purchases during creation—reduces circulating supply and increases market pressure, fueling a cycle of rising demand.

Even with strong inflows, XRP's price has

in early December as large holders sold 200 million tokens within two days of the ETF rollout. Some critics claim that the gap between inflows and price movement exposes underlying weaknesses, with 41.5% of XRP's supply currently at a loss. Supporters, however, argue that institutional capital typically moves more slowly than speculative funds. One analyst of these ETFs may not be seen until 2026, when ongoing demand could help stabilize prices.

The discussion around holding XRP directly versus through ETFs has grown more heated. Analysts note that ETFs provide access via brokerages and offer liquidity, but investors do not own the underlying asset and must pay management fees. Direct ownership of XRP, on the other hand, offers more utility and potentially lower long-term expenses, but comes with challenges related to custody and taxes

. This contrast mirrors the evolving preferences of investors as the market develops.

Institutional enthusiasm is also being boosted by new offerings such as CME's spot-quoted XRP and

(SOL) futures, which are scheduled to launch in December 2025. These contracts are designed to reflect live market prices with reduced margin requirements, appealing to firms looking for broader crypto exposure . This trend fits within a larger movement toward institutional participation, as XRP ETFs .

Looking forward, market experts

, depending on regulatory consistency and the uptake of Ripple’s expanding international payment solutions. Some believe the token could reach $3–$5 by year’s end if adoption accelerates, though risks such as global regulatory shifts and competition from other blockchain platforms remain .