What to Know:
- XRP ETFs are experiencing rapid growth, surpassing Solana ETFs in inflows.
- Aggressive fee waivers by issuers like Franklin Templeton are driving institutional investment.
- XRP ETF flows are fueling price breakouts, unlike Solana, where flows are acting defensively.
XRP is currently taking the lead in the altcoin ETF market in the United States, demonstrating impressive performance since its launch last month. The new XRP spot ETFs have quickly accumulated significant inflows, signaling strong investor interest in this digital asset. This activity highlights a shift in market dynamics, with XRP emerging as a primary choice for non-Bitcoin and Ethereum investments.
Solana ETFs initially led the way, amassing approximately $568 million over 20 days after their debut in late October. This initial success pushed the total assets of these funds to $840 million, representing a notable portion of Solana’s market capitalization.
However, XRP ETFs have rapidly closed the gap, driven by strategic pricing and significant capital injections from major players. The introduction of Grayscale and Franklin Templeton into the XRP ETF market triggered a substantial increase in investment.
The rapid adoption of XRP ETFs can be attributed to competitive pricing strategies, particularly Franklin Templeton’s aggressive fee waivers. By offering a 0.19% sponsor fee, fully waived on the first $5 billion in assets through May 2026, Franklin Templeton has created an attractive proposition for institutional investors.
Unlike Solana, where ETF inflows have acted as a buffer against price corrections, XRP flows are actively driving price increases. This dynamic has aided XRP in breaking through the $2 mark, reaching highs of $2.27.
The current momentum suggests that XRP ETFs could continue to attract significant investment, potentially reaching $1.5 billion by the end of the year. Under optimistic conditions, with continued fee waivers and asset rotation, the complex could even approach $2 billion in AUM.
Source: Original article
