XRP-linked exchange-traded funds reached more than $60 million in assets under management on December 17, according to market reports, while the token’s spot price declined over the same period.
Summary
- XRP was trading lower at the time of reporting, having fallen during the previous week.
- XRP has faced downward price pressure for several months.
- The divergence between ETF asset growth and declining spot prices warrants a closer look.
XRP was trading lower at the time of reporting, having fallen during the previous week. The divergence between ETF asset growth and declining spot prices has drawn attention from market participants.
Chad Steingraber noted on X that ETFs’ operational structure may explain the disconnect between fund flows and immediate price movements. ETF shares trade on exchanges during regular market hours, with fund managers calculating net flows at the end of each trading day and executing purchases of underlying XRP after market close, according to Steingraber. This timing means ETF inflows do not necessarily create immediate buying pressure on the spot market.
Institutional investment processes typically involve extended due diligence periods, risk assessments, and approval procedures that can span months, market analysts noted. Increases in ETF assets under management may reflect staged capital allocations rather than rapid position-building.
XRP technical analysis
XRP has faced downward price pressure for several months. Traders monitoring longer time frames have identified a sustained downtrend and multiple indicators suggesting potential further declines since mid-year, according to market reports. Recent price action has tested key support levels, with analysts noting that a sustained break below current support could shift focus to lower price bands.
The recent asset gains in XRP ETFs remain modest compared with assets under management in larger cryptocurrency ETF products, according to market data. ETF managers may employ various strategies including hedging, staged purchases, or other tactics that affect the timing and method of adding XRP to fund holdings, potentially reducing immediate price impact.
Data from the XRP Ledger shows the number of non-empty wallets has increased in recent weeks, according to on-chain analytics. The wallet activity suggests accumulation by some holders during the price decline.
ETF asset growth indicates rising institutional participation over time, while price action reflects continued selling pressure, according to market observers. Market participants are monitoring whether end-of-day ETF purchases will increase demand on the spot market and whether current support levels will hold in coming sessions.
