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The spot exchange-traded fund (ETF) for XRP is proving investors’ strong determination to enter the institutional market, attracting a substantial $1.4 billion in funds despite a downward price trend.
According to cryptocurrency media outlet U.Today on March 11 (local time), Bloomberg ETF analyst James Seyffart noted that the XRP spot ETF has maintained relatively solid performance despite market cooling since its launch last November. Seyffart highlighted that even though XRP’s price fell from about $2.50 at launch to the current level of around $1.38, inflows into the spot ETF have continued steadily. Since its debut, the XRP spot ETF has recorded cumulative inflows of $1.4 billion, clearly demonstrating strong market demand for regulated investment products.
Specific investment positions held by institutional financial firms were also disclosed through Seyffart. As of December 31 last year, global investment bank Goldman Sachs held approximately $153.8 million worth of XRP spot ETF positions. This equates to indirect holdings of about 83.63 million XRP, making it the largest single institutional holder. In addition to Goldman Sachs, Millennium Management invested $23 million and Citadel Advisors invested $4.52 million, as major Wall Street players continue entering the XRP ecosystem.
Seyffart also mentioned the significant buying power of retail investors hidden beyond disclosed data. Because 13F filings submitted by institutional investors do not include transactions by retail investors, actual demand for XRP spot ETFs is likely far greater than reported figures suggest. “Considering that the majority of investors are retail participants without disclosure obligations, public accessibility to XRP has improved dramatically,” Seyffart evaluated. The desire to hold digital assets through traditional financial accounts is serving as a key force supporting prices despite declines.
The U.S. XRP spot ETF market is currently witnessing intense competition for market share among asset managers. Bitwise recently led with $10 million in weekly inflows, bringing its total assets to $289 million, but Canary Capital has since reclaimed the top position in a tight back-and-forth race. Canary Capital currently manages approximately $271.56 million in assets, with Bitwise closely trailing at $263.55 million. Franklin Templeton and 21Shares are also participating in the market, adding further depth to the ecosystem.
Despite weakness in asset prices, the XRP spot ETF has acted as a safe haven for institutional capital, proving the growing maturity of the digital asset market. As institutional portfolio diversification strategies align with retail investors’ preference for regulated products, XRP’s market influence continues to expand. Aggressive marketing by major asset managers and ongoing increases in institutional holdings provide a strong foundation for future revaluation of XRP. As digital assets integrate with traditional financial infrastructure and establish new investment standards, the XRP spot ETF is playing a pivotal bridging role.
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