- XRP price rebounds with $164M in ETF inflows, signaling growing investor interest.
- Grayscale and Franklin Templeton lead with heavy investments in Ripple ETFs.
- Analysts predict Ripple supply could be absorbed in under six months with strong inflows.
XRP’s price saw a sharp rebound after a recent slump, driven by strong inflows into newly launched spot XRP ETFs. On November 24, these funds attracted $164 million in net inflows, marking the second-largest single-day total since the ETFs began trading, according to SoSoValue. This surge indicates a growing interest in the cryptocurrency.
Source: SoSoValue
Grayscale’s GXRP ETF took the lead with $67.36 million on its launch day. Franklin Templeton’s XRPZ ETF followed it up with $62.59 million. These heavy investments demonstrate that both retail and institutional investors are interested in Ripple.
XRP’s Price Gains 5.7% as ETFs Continue to Attract Strong Investments
The recent inflows are the seventh consecutive day that positive investment in Ripple ETFs occurred. This is also the second-largest inflow day since the launch of Canary’s XRPC fund. XRPC has now reached $306 million in assets with strong momentum even as it sits in the 231st position globally.
As a result of these significant ETF investments, the price of altcoin rose more than 5.7%, according to CoinMarketCap. The increase is showing the direct impact of Ripple-related ETFs on its market value.
Crypto analyst Chad Steingraber views this as the beginning of a longer-term bull trend for Ripple in the same way that Bitcoin ETFs did in the past.
Also Read: Franklin Templeton Debuts New XRP ETF, XRPZ
New ETFs Set to Fuel Growth in Ripple Market Demand
Steingraber compared Ripple ETFs with Bitcoin ETFs and noted that Bitcoin’s ETFs had more than $1 billion in inflows on multiple days. He suggests Ripple ETFs could take a similar path, estimating it could take $83M per fund to spark a $1 billion day’s worth of inflows. With 12 active Ripple ETFs, this could quickly become a reality.
If the current pace of inflows continues, Steingraber believes the circulating supply of Ripple could be significantly reduced. He approximates that a five-day run of billion-dollar inflows will possibly absorb more than 2.2 billion Ripple. This could push the price even higher, which will benefit the holders of tokens and the overall market.
More Ripple ETFs are also coming soon. 21Shares was automatically approved by the SEC for its ETF, and it will soon trade on the Cboe BZX Exchange. CoinShares has also revised its Nasdaq debut filing, indicating an increase in institutional exposure for the token.
Steingraber also noted that major asset managers such as BlackRock could speed the absorption of token supply. With institutional participation, the process might be shorter than six months. However, he noted that the most important factor in this scenario is the price of Ripple. To balance the increasing demand, there must be a strong increase in the price.
Also Read: XRP Drops to $2.08 as GXRP ETF Launch Fails to Lift Price: 3 Key Levels to Watch
