XRP sees $643M in ETF inflows — could that drive price to $5?
Institutional buyers have funneled roughly $643 million into XRP ETFs so far, with Canary Capital’s XRPC accounting for about 51% of that total. XRP has rallied ~14% over the past week to $2.20, outperforming many large-cap altcoins, while quarterly ROI remains around -22%. Significant on-chain activity supports the move: a single XRPL transfer moved 110,193,345 XRP with minimal fees, and exchanges have seen net withdrawals of ~270 million XRP since October (84 million withdrawn in the past week), while Binance reserves sit near monthly lows. Analysts note the rally is broad-based and driven by ETF inflows and capital rotation from other large-cap cryptos; if momentum persists, a further 120%+ surge could push XRP toward $5, potentially signaling a deeper bullish phase led by institutional demand. Key takeaways for traders: rising ETF inflows, large transfers and falling exchange supply reduce sell-side pressure; short-term momentum could fuel continued upside, but past October–November volatility and the need to flip Q4 momentum suggest caution.
Bullish
The news points to materially positive supply-demand dynamics for XRP. $643M of ETF inflows (with XRPC contributing ~51%) indicates meaningful institutional buying that can provide sustained bid pressure. Large single transfers on XRPL and cumulative exchange withdrawals (~270M XRP since October) reduce available sell-side liquidity, which historically amplifies price moves when demand rises. The current price action — a 14% weekly gain and outperformance versus ETH — supports momentum-driven continuation. Comparable past episodes (e.g., XRP’s November 2024 surge) show that concentrated inflows plus falling exchange supply can trigger rapid rallies; analysts here suggest a possible 120%+ continuation toward $5 if momentum holds. Caveats: recent October–November sell-offs highlight tail risk and that momentum can reverse; ETF flows could slow, and macro liquidity shifts or regulatory news can quickly change sentiment. For traders: expect bullish bias with elevated momentum — consider position-sizing and stop management because volatility remains high. Short-term trades may capture continuation; longer-term positions should watch ETF flow trends and exchange supply metrics for confirmation.