XRP ETF Cumulative Net Inflow Exceeds $1.3 Billion…Market Focuses Ahead of CLARITY Act Review

▲ XRP (Ripple) ETF ©

Institutional funds have been pouring into the XRP (Ripple) related ETF market, pushing the cumulative net inflow past $1.3 billion for the first time ever.

According to the investment media outlet TradingNews on May 13 (local time), the cumulative net inflow into the XRP spot ETF market reached $1.35 billion, setting a new all-time high. In the last day alone, $25.8 million to $26 million in funds flowed in, marking the largest daily inflow since January 5 this year. XRP is currently trading around $1.4257, remaining about 6% lower than its recent high of $1.50.

In the ETF market, institutional funds have been concentrating on products from Bitwise, Franklin Templeton, and Grayscale. The Bitwise XRP ETF traded at $15.88, the Franklin XRP ETF at $15.43, and Canary Capital's XRP ETF at around $15.08. The total Assets Under Management (AUM) for XRP spot ETFs expanded to $1.18 billion, which is approximately 1.3% of XRP's total market capitalization. The media outlet analyzed that, considering the case of Bitcoin spot ETFs, the XRP ETF market could grow to $2.5 billion to $4 billion within the next 12 to 18 months.

The biggest variable in the market is the review of the U.S. cryptocurrency market structure bill, the CLARITY Act, by the U.S. Senate Banking Committee, scheduled for May 14. This discussion, led by Senator Tim Scott, will address the classification criteria for digital assets as securities or commodities and the regulatory framework for stablecoins. With over 100 amendments submitted so far, the market is focusing on the possibility that XRP and related ETF products could directly benefit if regulatory clarity is enhanced.

On-chain data also clearly showed a trend of accumulation by large investors. According to Santiment, the number of wallets holding more than 10,000 XRP on the XRP Ledger reached 332,230, marking an all-time high. Furthermore, futures open interest hit a three-month high of $2.97 billion, increasing by approximately 23% in May alone. The media outlet assessed that the simultaneous occurrence of spot ETF fund inflows, an increase in whale wallets, and expanding open interest signals a strengthening of long-term positioning by institutional investors.

Technically, XRP is currently trading above its 50-day Exponential Moving Average (EMA) of $1.41, but it is encountering resistance at the 100-day EMA of $1.4959 and the 200-day EMA of $1.7101. The Relative Strength Index (RSI) remained in a neutral range at 51-57, and the Moving Average Convergence Divergence (MACD) showed a weak bullish signal. Expert ChartNerd predicted that if XRP breaks above $1.47, the upward trend could continue to $1.50 and then to $1.80.

The media outlet highly evaluated the long-term potential for expansion of the XRP ETF market. It explained that the official classification of XRP as a digital commodity by the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) in March this year served as a decisive turning point. Additionally, Ripple's pilot program with JPMorgan and Mastercard for tokenized national bond settlements based on the XRP Ledger was also assessed to have increased institutional confidence. TradingNews even presented an aggressive forecast that XRP's price could head towards $10 in the long term if regulatory clarity and institutional fund inflows continue.

*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.*