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Amidst a general cryptocurrency market downturn, including Bitcoin (BTC), XRP (Ripple) related Exchange Traded Funds (ETFs) have surrendered key support levels, pushing them to near year-lows. However, the XRP spot ETF Complex is demonstrating unique institutional resilience by recording massive capital inflows. Recently, a combination of leverage liquidation in the broader crypto market, geopolitical tensions, and a shift of funds towards the Artificial Intelligence (AI) sector has led to a simultaneous decline in futures-based ETF products. Despite this, the seven US XRP spot ETFs have shown a contrasting trend, attracting funds even as hundreds of millions of dollars flowed out of Bitcoin spot ETFs.
According to the investment media TradingNews on May 28 (local time), futures-based ETFs, Volatility Shares' XRPI and Rex-Osprey's XRPR, both showed weakness as the XRP price broke below the crucial support level of $1.2810, plummeting to approximately $1.28. XRP has fallen about 17% from its high of $1.5485 recorded on May 14, dropping below major moving averages, and the Relative Strength Index (RSI) has declined to around 43, indicating intensifying selling pressure. Experts diagnose that if XRP fails to defend the $1.27 level, further declines are inevitable, but if it successfully rebounds and recovers the 20-day Exponential Moving Average (EMA) line of $1.41, a strong recovery for related ETFs could materialize.
Despite this price collapse, the structural flow of the seven XRP spot ETFs listed in the US remains remarkably robust. Even on a day when Bitcoin spot ETFs experienced a net outflow of $733 million, XRP spot ETFs recorded '$0' in inflows/outflows, demonstrating a differentiated performance. The XRP spot ETF complex, which achieved a net inflow of $118 million throughout May, is on track for its best monthly performance this year. Currently, the total Assets Under Management (AUM) of these spot ETFs is approximately $1 billion, securing 904.8 million XRP tokens and absorbing a significant portion of the market's circulating supply.
Macroeconomic tailwinds supporting institutional confidence and accumulation patterns by whales are also being observed. As the market awaits Goldman Sachs' 13F filing, which will disclose whether it maintains its approximately $153.8 million XRP ETF position, the fact that XRP constitutes 19.88% of Cathie Wood's Ark Invest-managed 'CoinDesk 20 ETF,' placing it third, proves its strong asset value. In the derivatives market, open interest surged from $3.6 billion to $3.8 billion in a single day, signaling new capital inflows. Furthermore, expectations for a regulatory tailwind are rising as the US cryptocurrency market structure bill, the CLARITY Act, approaches a vote in the Senate plenary session.
Consequently, the XRP ETF market faces two phases: short-term price erosion and long-term structural growth. The spot ETF market, where a total of seven firms, including Canary Capital's XRPC and Bitcoin 10 Index (BITW), are engaged in fierce fee competition, has become a key channel for institutional investors to choose as a long-term store of value. In contrast, futures-based XRPI and XRPR are considered suitable for short-term trading due to rollover costs and contango risk. If the XRP price stabilizes at the $1.28 level and macroeconomic pressures ease in the future, the quiet institutional accumulation pattern amid low trading volumes is expected to lay the groundwork for a future explosive breakout.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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