Despite XRP spot ETFs reaching $1 billion in assets under management across five issuers, with net inflows around $423.27 million since mid-November, the expected price surge hasn't materialized. The analysis points out that the total AUM isn't the primary driver of price increases; instead, the focus should be on net creations, which directly influence the demand for underlying XRP. A significant portion of the AUM consists of early positioning, seeded inventory, and market movements, rather than new cash inflows. Currently, about 1% of the circulating supply is held through these ETFs, which broadens access but doesn't guarantee a price squeeze. The piece contrasts this with Bitcoin ETFs, where immediate repricing was observed, highlighting that ETFs don't automatically lift prices unless they actively reduce market supply.

Despite XRP spot ETFs reaching $1 billion in assets under management across five issuers, with net inflows around $423.27 million since mid-November, the expected price surge hasn't materialized. The analysis points out that the total AUM isn't the primary driver of price increases; instead, the focus should be on net creations, which directly influence the demand for underlying XRP. A significant portion of the AUM consists of early positioning, seeded inventory, and market movements, rather than new cash inflows. Currently, about 1% of the circulating supply is held through these ETFs, which broadens access but doesn't guarantee a price squeeze. The piece contrasts this with Bitcoin ETFs, where immediate repricing was observed, highlighting that ETFs don't automatically lift prices unless they actively reduce market supply.