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▲ XRP (Ripple) ETF ©
XRP (Ripple) spot ETF funds have surpassed $1.35 billion. With institutional funds flocking in ahead of the vote on the US crypto market structure bill, the CLARITY Act, the XRP market is heating up again.
According to the investment media outlet TradingNews on May 12 (local time), XRP traded down 3.2% at $1.42, a drop of approximately 6% from its recent high of $1.50. However, the inflow of XRP spot ETF funds actually strengthened. XRPI, a Nasdaq-listed XRP ETF, traded at $8.06, and Rex-Osprey XRP ETF, XRPR, recorded $11.86. The average daily trading volume for XRPI was tallied at 187,640 shares.
The biggest variable in the market is the review of the US crypto market structure bill, the CLARITY Act, by the US Senate Banking Committee on May 14. This bill contains provisions to clearly define whether digital assets, including XRP, are commodities. It is considered a watershed moment, as it could be the first time XRP's commodity status is formalized at the federal law level since the $125 million settlement between Ripple and the US Securities and Exchange Commission (SEC). The bill was co-sponsored by Senators Cynthia Lummis and Kirsten Gillibrand.
The pace of institutional fund inflows is also accelerating. The cumulative net inflow into XRP spot ETFs has surpassed $1.35 billion, with $25.8 million flowing in on May 12 alone. This marks the largest daily net inflow in the past four months. Standard Chartered projected that if the CLARITY Act passes, additional inflows into XRP ETFs could reach $4 billion to $8 billion by year-end. The media analyzed that major asset management firms like BlackRock and Fidelity are highly likely to seriously consider launching XRP products if regulatory clarity is secured.
In the ETF market, Franklin Templeton's XRPZ recorded the strongest fund inflow, absorbing $13.6 million in one day. Bitwise XRP ETF followed with $7.5 million, and Grayscale GXRP recorded $4.5 million. Canary Capital's XRPC and 21Shares' TOXR are also gaining attention as channels for institutional investor inflows. Simultaneously, XRP futures open interest expanded to $3.01 billion, reaching a three-month high. This represents an increase of approximately 30% from the March low.
Technical trends are mixed. XRP is currently trading above its 50-day exponential moving average of $1.42, and the Moving Average Convergence Divergence (MACD) is maintaining a slight upward trend. The Relative Strength Index (RSI) is at 57, which is not an overheated zone, but STOCH(9,6) is at 23, remaining in the oversold zone. The media presented the breakthrough of $1.50 as a key turning point. If this price level is broken on a daily closing basis, there is potential for an upward movement to the $1.70-$1.80 range, but if it falls below $1.41, there is a possibility it will retest the $1.33-$1.38 support zone.
The media assessed that the long-term bullish thesis for the XRP market remains valid. Specifically, Flare's XRPFi ecosystem has secured $457 million in Total Value Locked (TVL), increasing the utilization of XRP-based decentralized finance (DeFi), and the joint commodity classification by the SEC and the US Commodity Futures Trading Commission (CFTC) is also raising expectations for institutional integration. However, the fact that XRPI has fallen approximately 65.7% from its last year's high of $23.53 is still cited as a risk factor.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*
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