XRP Spot ETF Sees Inflow, So Why Was the US Quiet?

▲ XRP (Ripple), Trump/ChatGPT Generated Image ©

While funds have started flowing back into the XRP (Ripple) spot ETF, the fact that the real leadership of this rally came from Europe, specifically Switzerland, rather than the United States, has drawn market attention.

According to the investment media outlet TradingNews on April 14 (local time), XRPI closed at $7.67 and XRPR at $11.17, with the total assets under management for global XRP ETFs reaching $2.46 billion. Weekly net inflows amounted to $119.6 million, marking the strongest flow since December last year, accounting for 53% of global cryptocurrency fund inflows in the same week.

Switzerland was the most prominent country in this fund inflow. Swiss funds amounted to $157.5 million, accounting for approximately 70% of global weekly XRP-related inflows, while US funds remained at around $27.5 million. TradingNews pointed out that this structure indicates European funds are proactively building positions while US investors await the passage of the US crypto market structure bill, the Clarity Act.

Institutional participation is also expanding. Goldman Sachs was confirmed to hold $153.8 million across four XRP ETF funds, and the overall XRP ETF market has expanded to a structure where 10 products compete. However, an analysis suggests that XRP ETFs still face a structural limitation of being more retail investor-driven than institution-driven, as 84% of assets in US-listed XRP ETFs are from individual investors, whereas Solana ETFs have an institutional allocation of 48.8%.

In terms of market sentiment, conflicting signals coexist. Binance's XRP taker buy/sell ratio hit an all-time high for 46 days, and whale wallets accumulated over 11 million XRP daily during periods of fear. This indicates aggressive buying is entering the market during times of extreme fear. Furthermore, the media reported that if the Clarity Act is introduced by the end of April, a short-term target price of $1.60 for XRP is expected, and Standard Chartered has presented an $8 scenario by year-end, contingent on $1 billion in ETF inflows.

Consequently, the direction of XRPI and XRPR is interpreted to depend on the catalyst period from mid to late April. TradingNews stated that as long as XRP maintains the $1.28 support level, the cumulative accumulation trend remains valid, and if XRP rises to the $1.44-$1.60 range, XRPI could open up to $8.25-$9.15 and XRPR to $12.00-$13.30. Conversely, it also warned that if key support levels break, the cumulative accumulation logic could falter.

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