Exchange-traded funds (ETFs) based on XRP have recently distinguished themselves in the cryptocurrency sector, drawing in $164 million in net investments on November 24 alone—surpassing
Bitcoin
(BTC),
Ethereum
(ETH), and
Solana
(SOL) products. This notable increase followed the launch of Franklin Templeton’s
XRPZ
and Grayscale’s
GXRP
ETFs, each of which attracted over $60 million in inflows on their first day,
bucking the general trend of withdrawals
seen in leading crypto investment vehicles. This strong performance highlights a rising interest from both institutional and individual investors in alternative cryptocurrencies, especially
XRP
, which is integral to the XRP Ledger (XRPL) for international payments.
The achievements of XRP ETFs stand in stark contrast to the difficulties faced by Bitcoin and Ethereum funds. On the same day,
BTC
ETFs experienced $151.1 million in net outflows, while
XRP ETFs maintained a positive inflow streak
since their debut, amassing a total of $586.8 million in net investments. Although Solana ETFs continued their 20-day streak with an additional $58 million, they still trailed behind XRP’s pace.
Experts point to XRP’s distinct role
in global settlement systems and the regulatory certainty it gained after Ripple’s August 2025 SEC resolution as reasons for this divergence.
Franklin Templeton’s XRPZ, which debuted on NYSE Arca, demonstrates the growing institutional interest in altcoins. The ETF, structured as a grantor trust holding physical XRP, tracks the CME CF XRP-Dollar Reference Rate and uses Coinbase as its custodian. The company highlighted XRP’s ability to provide “quick, affordable international transactions” and its minimal energy usage,
establishing it as a core asset
for digital investment portfolios. Likewise, Grayscale’s GXRP, which transitioned from a private trust,
brought in $67.4 million in new investments
, indicating increased demand for regulated XRP investment options.
Despite the positive ETF flows, the value of XRP itself has faced challenges,
dropping 32.5% over the past month
and 10.9% in the last week. This disconnect illustrates the complexities of crypto markets, where ETF inflows don’t always align with token price movements. Still, supporters believe the ETF’s strong performance reflects growing recognition of XRP as a utility-focused asset rather than just a speculative investment.
David Mann, Head of ETF Product at Franklin Templeton
remarked that XRP’s “proven usefulness in cross-currency settlements” has made it a vital part of the digital payments landscape.
The rapid growth of XRP ETFs also signals broader changes in crypto investing.
With projections of over 100 crypto ETFs launching
in the next half-year, investors are increasingly looking to diversify across various digital assets. This movement is further encouraged by regulatory progress, such as the SEC’s approval of spot ETFs for alternative coins, which has paved the way for more institutional involvement. At the same time,
new entrants like Canary Capital and Bitwise
have joined the XRP ETF market, intensifying competition in this emerging sector.
As the industry continues to develop, the performance of XRP ETFs will likely serve as a key barometer for investor confidence in altcoins. Their ability to outperform BTC and ETH funds amid market turbulence suggests a rising preference for assets with practical applications and regulatory transparency. Nevertheless, challenges remain, including price volatility, evolving regulations, and the complexities of managing funds tied to specific tokens. For now, XRP ETFs exemplify the growing maturity of the crypto asset space and its appeal to traditional investors seeking innovation in digital finance.
