XRP ETF Demand Dries Up: What’s Next for Ripple?
The initial excitement surrounding XRP ETFs appears to be fading. After a record-breaking debut in late 2025, inflows have stalled and recent weeks have seen minimal activity, raising questions about the long-term viability of these investment vehicles and the future trajectory of XRP’s price.
The ETF Inflow Rollercoaster
Canary Capital’s XRPC ETF initially captivated investors, setting a new trading volume record upon its launch in November 2025. Four additional XRP-tracking ETFs quickly followed, collectively attracting over $1 billion in inflows. But, the momentum proved unsustainable.
Weeks ending January 23 and January 30 saw significant outflows, totaling $40.64 million and $52.26 million respectively. While a subsequent week showed a $39.04 million inflow, the trend quickly reversed. More recently, the week of February 11 experienced zero reportable daily flows, a first for these ETFs. This pattern continued with two days of zero flows – February 17 and February 20 – and minimal inflows on the remaining days.
As of February 23, 2026, cumulative net inflows remain flat at $1.23 billion, according to SoSoValue.
XRP Price Reacts to ETF Slowdown
Despite a brief surge to over $1.65 last weekend, XRP’s price has struggled to maintain gains, falling over 10% weekly to trade around $1.40. This price action coincides with the dwindling ETF inflows, suggesting a strong correlation between institutional investment and XRP’s market performance.
Data indicates that short traders currently dominate the XRP market. However, some analysts suggest XRP may be undervalued. Santiment’s recent report highlights a potentially favorable 30-day MVRV ratio, and the increasing amount of realized losses could signal a potential price rebound, mirroring a 114% surge observed in 2022 when similar losses occurred.
What’s Driving the Lack of Interest?
The decline in ETF inflows could be attributed to several factors. The SEC’s upcoming decision on the T. Rowe Price Active Crypto ETF, expected by February 26, 2026, may be causing some investors to hold back, anticipating further options. Broader market conditions, including hawkish signals from the Federal Open Market Committee (FOMC) and geopolitical risks like rising tensions between the US and Iran, are also weighing on the crypto market as a whole.
The Bitwise XRP ETF (XRP) is currently trading at $15.87 as of February 20, 2026, showing a modest gain.
Looking Ahead: Key Levels to Watch
According to analysis, XRP is currently testing key support levels around $1.26. A break below this level could trigger a deeper correction. The price is also exhibiting a hidden bearish divergence, suggesting potential downward momentum.
The SEC’s decision on the T. Rowe Price ETF will be a crucial catalyst. Approval could inject fresh capital into the XRP market, while rejection could exacerbate the current downturn.
FAQ
Q: What is an XRP ETF?
A: An XRP ETF is an exchange-traded fund that tracks the price of XRP, allowing investors to gain exposure to the cryptocurrency without directly owning it.
Q: Why have XRP ETF inflows decreased?
A: Several factors may be contributing, including broader market uncertainty, the SEC’s pending decision on another ETF, and potentially waning investor enthusiasm.
Q: What is MVRV ratio?
A: MVRV (Market Value to Realized Value) is an on-chain metric that compares the market capitalization of an asset to its realized capitalization. It can help identify whether an asset is overvalued or undervalued.
Q: What is VWAP?
A: VWAP (Volume Weighted Average Price) represents the average price weighted by volume. We see widely used as a proxy for institutional cost basis.
Did you know? XRP ETFs saw inflows for three consecutive weeks before the recent slowdown, with the week ending February 6 recording $36.04 million in inflows, but this figure dropped to just $1.84 million by the week ending February 20.
Pro Tip: Keep a close eye on the SEC’s decision regarding the T. Rowe Price Active Crypto ETF. This could significantly impact the XRP market.
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