XRP ETF flows revealed the state of institutional interest in the cryptocurrency.
Crypto investors are contemplating XRP price prospects in 2026 after the cryptocurrency’s latest massive swing low. The Ripple-native coin was one of the most prominent coins of 2025.
Many analysts anticipated a bullish XRP price action, backed by Ripple’s growing prominence in the global financial infrastructure. However, the cryptocurrency was on track to conclude the year near its 12-month low.
XRP price exchanged hands at $1.87 at press time. It was a 48% discount from its 2025 high in July. This price point meant it was still within its 12-month bottom range, where it could potentially bounce back in 2026.
The discounted price may attract heavy accumulation once demand makes a comeback. Some market data suggest that demand may already be building up.
However, any accumulation efforts barely had any impact on the cryptocurrency’s price, but that might change as exchange reserves dip.
Aside from the fact that the cryptocurrency has been trading within its 12-month low range and heavily discounted, exchange flows add to the bullish prospects. According to the latest XRP exchange reserves data, a substantial amount of the cryptocurrency exited exchanges in December.
XRP exchange reserves dropped from 2.712 billion coins at the start of December to 2.63 billion coins at press time. The XRP exchange reserves declined at around the same time that XRP price dropped by over 14%. The last time that XRP reserves dropped to their current levels was in 2024.
The fact that exchange reserves were declining as the price fell further suggests that buyers have been withdrawing their coins from exchanges. A move typically associated with a mid-to-long-term focus.
It was also worth noting that exchange reserves are now at their lowest level in the last 12 months. This suggests that investors have been securing exposure to the cryptocurrency as XRP price tanked, and more so this month as it retested its lower range.
The spot crypto ETFs scene has been gradually heating up, revealing strong institutional demand for the cryptocurrency. The cryptocurrency was on its 8th consecutive week of positive XRP ETF flows.
Although the XRP spot ETFs maintained a positive flow for eight weeks. The inflows declined considerably during the holiday period.
Weekly XRP ETF inflows clocked $8.44 million this week, although it was halfway through. This was a significant dip from the $230.74 million weekly inflows observed in the first week of December.
This sharp decline suggests that institutional demand cooled down substantially. Nevertheless. XRP still managed to outperform Bitcoin, Ethereum, and Solana ETFs in terms of inflows.
XRP ETFs registered total net inflows worth over $478 million so far in December. This was notably lower than the $66.6 million net inflows in November.
XRP ETFs now hold about $1.24 billion in total assets under management. In short, the spot ETF segment had a healthy kickoff in 2025, and this could set the pace for the next 12 months. Robust inflows may put the XRP price on track to achieve a healthy recovery in the coming months.
Based on these combined factors, it is clear that XRP investor confidence may be building towards recovery in 2026, and XRP bulls may benefit.
Read more on The Coin Republic
