XRP ETFs Beat Bitcoin in Institutional Inflows

In a significant shift for digital asset markets, spot XRP ETFs have outperformed Bitcoin in net institutional inflows during the first weeks of 2026. 

Data indicates that while Bitcoin and Ethereum products faced substantial outflows in late 2025 and early January, XRP investment vehicles maintained a record-breaking streak of positive subscriptions.

This capital rotation highlights a growing institutional preference for XRP’s utility-driven narrative over Bitcoin’s store-of-value positioning. 

Analysts suggest that the resolution of Ripple's regulatory hurdles has cleared the path for pension funds and family offices to seek diversified exposure within the crypto sector.

Key Takeaways

• Spot XRP ETFs reached $1.37 billion in cumulative inflows by mid-January, marking one of the fastest adoption curves for an altcoin-based fund.
• Bitcoin ETFs recorded over $1 billion in net outflows in December 2025, contrasted by XRP’s 43-day consecutive inflow streak.
• Institutional demand is increasingly focused on XRP Ledger’s cross-border payment utility and its potential as a digital commodity.
   

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Institutional Rotation from Bitcoin and Spot XRP ETF Net Assets

The current XRP ETF inflows 2026 represent a material institutional rotation from Bitcoin as investors seek higher risk-reward profiles. 

According to recent SoSoValue data, the total net assets across US spot XRP ETFs have surpassed $1.51 billion, with the Canary Capital XRP ETF (XRPC) leading the group in assets under management.

This surge in demand is colliding with a sharp decline in exchange liquidity, as XRP reserves on major platforms have reached multi-year lows. 

Market observers note that for every $1 billion in ETF inflows, approximately 500 million XRP are removed from active circulation, creating a structural supply shock that supports the current price floor.

Read more: XRP Price Jumped in Early 2026: Can ETF Push It to New Highs?

The Canary Capital XRP ETF and Bitwise's XRP fund have been the primary beneficiaries of this shift, consistently logging daily peaks of over $12 million. 

While Bitcoin ETFs continue to be a core holding for most risk-controlled portfolios, the incremental institutional dollar is currently moving toward the newer XRP-linked products.

Standard Chartered analysts have noted that this momentum could lead to an XRP price breakout 2026, with targets ranging from $4 to $8 if monthly inflows sustain their current pace of $483 million. 

The market’s resilience during recent Bitcoin volatility underscores the "de-coupling" effect that institutional-grade XRP products are having on the broader altcoin market.

Furthermore, the introduction of the CLARITY Act in early 2026 is expected to provide the final statutory framework needed to cement XRP’s status as a digital commodity. 

This legislative tailwind, combined with the current inflow trajectory, positions XRP as a dominant "third pillar" in the US crypto ETF landscape alongside BTC and ETH.

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XRP Price Breakout 2026 and Market Outlook

The technical structure for XRP is increasingly bullish as it enters the second month of 2026. 

The XRP/BTC ratio has recently broken above key monthly resistance levels, a signal that many chartists interpret as the beginning of a sustained period of outperformance against the market leader. 

With institutional demand now verified through measurable ETF subscriptions, the path toward a new all-time high appears to be a matter of supply absorption rather than speculative hype.

FAQ

Why are institutions choosing XRP ETFs over Bitcoin right now?

Institutions are rotating capital into XRP for its specific utility in cross-border settlements and because it is viewed as a "less crowded" trade compared to Bitcoin.

What are the top XRP ETFs currently available?

Leading providers include Canary Capital (XRPC), Bitwise, Franklin Templeton (EZRP), and Grayscale (GXRP), which together manage over $1.5 billion in assets.

How do XRP ETF inflows affect the token's circulating supply?

ETFs must hold the underlying XRP in institutional custody; consistent inflows reduce the amount of XRP available on exchanges, potentially leading to a supply squeeze.

Is XRP now considered a commodity like Bitcoin?

Following the 2025 SEC settlement and the proposed CLARITY Act, many institutional frameworks and analysts now classify XRP as a digital commodity.

What is the 2026 price prediction for XRP based on ETF demand?

Base case scenarios predict a rise to $3–$4, while bullish institutional models suggest targets as high as $8 if cumulative inflows reach $10 billion by year-end.

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