Franklin XRPZ leads the way, the institutional battle behind XRP spot ETF's single-day net inflow of $4.93 million

According to the latest news, the US XRP spot ETF experienced a total net inflow of $4.93 million on January 9th. Behind this seemingly ordinary figure, it reflects ongoing institutional investor interest in XRP. From daily data to cumulative scale, from the performance differences among various ETFs to their integration with real-world applications, this wave of capital inflow is reshaping XRP’s role in institutional investment.

Institutional Competition Behind Daily Inflows

Divergence in ETF Performance

According to the latest news, the distribution of daily net inflows is uneven, indicating differentiated recognition of various ETF products by the market:

Franklin’s XRPZ leads overwhelmingly, with 92% of the daily net inflow. This not only shows investors’ preference for Franklin’s product but also reflects differences in competitiveness among management institutions. Although Grayscale is a giant in asset management, its appeal in the XRP ETF market is noticeably less than Franklin’s, likely due to factors such as product fees, liquidity, and marketing efforts.

Significance of the Cumulative Scale

As of now, the total net asset value of XRP spot ETFs has reached $1.47 billion, with a cumulative net inflow of $1.22 billion. What does this scale mean?

• Accumulating over $1.2 billion in assets in just over 50 days indicates a high level of enthusiasm among institutional investors for allocation.
• This scale has locked in over 746 million XRP tokens, accounting for about 12% of XRP’s circulating supply, demonstrating deep institutional participation.
• Compared to WisdomTree’s withdrawal of its application, the market is selectively supporting certain products rather than blindly chasing all XRP ETFs.

Factors Supporting Institutional Interest

Confirmation of Regulatory Status

According to the latest news, Ripple executives have explicitly stated that XRP has established its legal status as a non-security digital asset through a court ruling in the US. This confirmation is significant for institutional investors because it eliminates regulatory uncertainty, allowing them to allocate XRP assets with greater confidence.

In contrast, the entire cryptocurrency industry still lacks comprehensive regulatory clarity, and XRP’s certainty has become a competitive advantage.

Support from Real-World Applications

Beyond investment tools like ETFs, XRP’s practical applications are also bolstering institutional confidence. According to relevant information, Ripple’s On-Demand Liquidity (ODL) payment layer processed over $15 billion in cross-border transactions in 2024, with a year-over-year growth of 32%. Among Ripple’s more than 300 financial institutions, about 40% are using the ODL service.

This means XRP is not just an investment asset but also a payment tool with real use cases. This dual identity provides fundamental support for long-term institutional allocation.

Dislocation Between Price and Capital Inflows

Current Challenges

Although capital inflows are strong, XRP’s price performance has been relatively lagging. As of the latest data, XRP is priced at $2.09, still below its peak in 2025. This dislocation between capital inflow and price performance has also appeared during the launch of ETFs for Bitcoin and Ethereum.

Analysis from relevant sources suggests that XRP currently shows signs of a “dead cat bounce,” with trading volume weak and market skepticism persisting. The price is stalling near major moving averages, reflecting a lack of market confidence.

Market Dual Segmentation

An interesting phenomenon is that institutional investors are significantly more optimistic than retail investors. According to relevant information, Coinbase’s head of institutional strategy stated that institutional investors are more optimistic about cryptocurrencies than retail investors, indicating that professional investors have a higher recognition of XRP’s long-term value.

Key Focus for the Future

The capital inflow trend for XRP ETFs may continue, supported by several factors:

• Clarification of regulatory status has eliminated major uncertainties.
• The demand for allocation among institutional investors is still being released.
• Expansion of real-world applications (such as Flare launching FXRP on Hyperliquid) enriches XRP’s ecosystem.

However, whether the price can keep pace with capital inflows depends on market sentiment shifts and trading volume recovery.

Summary

XRP spot ETF experienced a single-day net inflow of $4.93 million, with a total of $1.22 billion accumulated, reflecting ongoing recognition from institutional investors. Franklin XRPZ’s leading position indicates market concentration, while WisdomTree’s withdrawal shows rational market choice.

From regulatory certainty to real-world applications, from institutional allocation to market segmentation, XRP is undergoing a transition from a speculative asset to an institutional asset. Currently, capital is in place, but the price is still catching up. Whether this dislocation will eventually be resolved or persist long-term depends on subsequent market sentiment evolution and trading volume performance.