XRP ETFs have gained traction since entering the market, with inflows rising steadily and attracting attention from both retail and institutional investors.
Notably, recent comments from Canary Capital’s CEO suggest that the next phase of demand may come from pension funds and insurance companies, a development that could influence XRP’s long-term price.
For context, Canary Capital led the XRP ETF push when it launched its XRPC product on November 13. The fund recorded a strong debut, pulling in $245 million in inflows on launch. One week later, Bitwise introduced its own XRP ETF. Franklin Templeton and Grayscale followed four days after Bitwise’s entry, while 21Shares completed the group by launching its product on Dec. 16.
Since then, all five XRP ETFs have seen steady inflows, with no single day of outflow. After 21 straight days of consistent demand, total inflows across the products crossed $1 billion. As of today, combined inflows stand at roughly $1.14 billion.
Canary Capital CEO Steven McClurg discussed this growth during a recent podcast. He pointed out that Canary Capital and Bitwise launched similar products around the same time, which worked well because both firms maintain a good working relationship.
McClurg explained that new ETFs usually attract retail investors first, and XRP ETFs followed this pattern. Specifically, during the first one to two weeks after launch, retail buyers accounted for much of the inflow activity.
However, soon after, the trend began to change. Notably, McClurg revealed that Canary Capital started receiving inquiries from pension funds and insurance companies across the world. He noted that these institutions represent an important audience for Canary Capital.
According to McClurg, interest from this group continues to grow. He also stressed that XRP appeals to traditional financial players because they “get it.” To him, XRP functions as financial infrastructure, which makes it attractive to Wall Street firms and global capital markets looking for assets with clear use cases.
With XRP ETFs now holding $1.14 billion in inflows, market watchers have begun discussing how deeper institutional involvement could affect XRP’s price. While the exact impact remains uncertain, sustained inflows from large institutions could support higher prices over time.
To explore this, we asked Google Gemini to analyze the potential price effect of pension funds and insurance companies entering the XRP ETF market more deeply. Responding, Gemini emphasized that these institutions manage trillions of dollars and usually invest with long-term goals rather than short-term trading strategies.
Speaking further, the chatbot explained that crypto markets often experience a multiplier effect, where each dollar of new capital creates a much larger increase in market value because most tokens remain off the market.
At present, retail investors account for roughly $1.25 billion in XRP ETF assets. Gemini suggested that if pension funds and insurance firms allocate just 0.5% to 1% of their portfolios, XRP ETFs could attract an additional $10 billion to $20 billion in net inflows. Using a 30x multiplier on $15 billion in new capital, Gemini estimated a possible $450 billion increase in market cap.
With about 60 billion XRP in circulation, this increase could add roughly $7.50 per token, pushing XRP toward the $9 range or higher. Gemini also highlighted that pension funds and insurance companies typically hold assets for five to ten years. As ETFs move XRP into long-term custody, available supply on exchanges could shrink.
According to Gemini, rising demand paired with reduced supply could bolster price movements. In such a scenario, XRP could technically reach the $10 to $15 range during a period of strong market momentum. However, it is important to note that these projections remain speculative.
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