XRP Spot ETF Nears $2 Billion Breakthrough... Institutions 'Cheer' as Price Drops

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Despite the short-term price correction in the virtual asset market, with a large inflow of institutional funds, XRP spot ETFs are on the verge of surpassing $2 billion in assets under management.

According to crypto media outlet U.Today on September 24 (local time), the total assets under management (AUM) of the seven XRP spot ETFs listed on the US market reached $1.79793 billion. According to aggregations by virtual asset market data platforms SosoValue and XRP Insights, institutional funds net-inflowing into XRP spot ETFs totaled $18.04 million on September 23 alone. Despite XRP prices showing a sharp decline of around 5% to 6% on that day, institutional investors demonstrated a counter-cyclical trend, engaging in large-scale dip buying from a long-term perspective.

This inflow of funds was concentrated in the exchange-traded funds of major asset management companies. Bitwise's XRP spot ETF attracted the most funds in a single day, drawing in $11.54 million and increasing its cumulative size to $649 million. Franklin Templeton's product also contributed to the inflow of dip-buying, driving the overall increase in assets under management. The market assessed that major institutions are utilizing the temporary price retreat caused by macroeconomic uncertainties as an opportunity to inject capital and expand their holdings.

As physical purchases through ETFs continue, the supply shortage in the circulating market is also accelerating. The total amount of XRP deposited with custodians by the seven approved funds as collateral for share issuance amounts to 1.141 billion XRP. This means that approximately 1.1411% of the total supply, which is strictly limited to a maximum issuance of 100 billion XRP, is now fully locked in institutional fund vaults.

The market is paying attention to a structural change where the circulating supply is steadily being depleted, irrespective of short-term price fluctuations. If institutional capital inflows through regulated institutional channels surpass the $2 billion mark, it is analyzed that supply-demand imbalance will intensify, serving as a strong support for a price rebound.

[Article Summary]

-US XRP spot ETFs recorded $1.79793 billion in AUM, nearing the $2 billion mark.

-Even as prices fell by over 5%, institutional net inflows of $18.04 million occurred in a single day, leading to aggressive dip buying.

-Fund custody volume exceeded 1.141 billion XRP, locking 1.1411% of the total supply within institutional channels.

*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.*