XRP Exchange-Traded Funds Cross $1 Billion Milestone as Institutional Appetite Surges

$1B ETF Breakthrough as Institutional Interest Accelerates”>XRP exchange-traded funds have surpassed $1 billion in assets under management, driven by institutional investors’ growing comfort with the digital asset’s established use cases and regulatory clarity, according to CF Benchmarks CEO Sui Chung.

The milestone comes as the recently launched 21Shares XRP ETF (TOXR) has experienced consistent inflows since its December 11, 2025 debut on the Cboe BZX exchange, with the fund’s assets under management already reaching hundreds of millions of dollars. The ETF has maintained a 30-day positive inflow streak despite broader crypto market volatility.

Chung highlighted several factors contributing to XRP’s appeal among traditional investors, particularly the cryptocurrency’s established role in cross-border payments and its integration with existing financial infrastructure. Unlike newer digital assets that lack clear utility, XRP has been used by financial institutions for cross-border transactions for nearly a decade, providing a familiar framework for conservative investors entering the crypto space.

The institutional momentum reflects growing confidence in XRP’s regulatory environment following Ripple’s recent federal approval to establish a national trust bank. The Office of the Comptroller of the Currency granted conditional approval for Ripple to operate as a national trust institution, marking a significant regulatory milestone that addresses longstanding uncertainty around the asset’s legal status in the United States.

Ripple CEO Brad Garlinghouse recently disclosed that XRP ETFs have collectively raised over $700 million in just their first few weeks of trading, attributing the surge to pent-up institutional demand that was previously constrained by regulatory ambiguity. The figure suggests rapid acceleration toward the $1 billion threshold that CF Benchmarks now confirms has been crossed.

Market data shows XRP trading at $1.80 as of December 19, 2025, representing a 3.39% decline over the past 24 hours and an 11.44% drop over the past week. Despite the recent price weakness, the token maintains its position as the fifth-largest cryptocurrency by market capitalization at $109.3 billion, with 3.78% dominance in the overall crypto market valued at $2.87 trillion.

The disconnect between ETF inflows and price performance highlights the complex dynamics in crypto markets, where institutional adoption through regulated products doesn’t always translate to immediate price appreciation. Analysts note that XRP faces technical resistance around the $2.00-$2.10 range, which has capped recent rallies despite positive institutional flows.

Traditional financial giants including Franklin Templeton, BlackRock, and Vanguard have entered the cryptocurrency space in 2025, signaling a broader shift in institutional attitudes. This institutional embrace extends beyond ETFs to direct partnerships, with Swiss crypto bank Amina recently selecting Ripple’s cross-border payment solution to enable faster, lower-cost international transfers for its clients.

The growing institutional interest aligns with Ripple’s expanding presence in traditional finance infrastructure. The company’s payment network now covers more than 90% of daily foreign exchange markets and has processed over $95 billion in transaction volume, demonstrating the practical utility that appeals to institutional investors seeking assets with proven use cases.

Looking ahead, industry observers expect continued institutional adoption of XRP-based products as regulatory frameworks solidify. Garlinghouse has projected that meaningful cryptocurrency legislation could emerge in the first half of 2026, potentially removing remaining barriers to institutional participation and driving further growth in XRP ETF assets under management.