The U.S. spot exchange-traded funds (ETFs) are projected to exceed $1 billion in net inflows in the upcoming days, according to Mati Greenspan, the founder of Quantum Economics.
Since their introduction on Nov. 14, the ETFs have seen a remarkable streak of 15 days with inflows totaling a net of $897.35 million, as reported by SoSo data. Major contributors to these inflows include funds from Canary Capital, Grayscale, Bitwise, and Franklin Templeton.
“This momentum is set to continue, and the milestone will be reached in no time. The path is already clear,” Greenspan stated in an interview with CoinDesk.
“In many respects, XRP is benefitting from the larger institutional trend given its liquidity, brand recognition, and recent positive regulatory stance. While this does not necessarily reflect renewed enthusiasm for the technology itself, it accounts for the significant ETF inflows.”
The resolution of the legal battle between Ripple and the U.S. Securities and Exchange Commission in August, which determined that XRP is not a security but fined the company $125 million for securities violations, has encouraged institutional interest.
“Institutions are reacting positively to the clarity in regulations, its current market standing, and its lengthy history,” Greenspan remarked. However, “XRP has not demonstrated the same level of innovation or user engagement as newer networks, but its legacy is important.”
Over-the-counter (OTC) desks have facilitated inflows during a period of widespread market declines affecting bitcoin and ether ETFs, as noted in a report from Investing. The OTC channel’s stability allows the XRP ETFs to attract higher-quality institutional investments compared to the launches of bitcoin and ether.
The streak of XRP ETFs positions them as one of the fastest-growing categories of major crypto-asset offerings. Achieving the $1 billion milestone in under a month could be interpreted as a strong endorsement and liquidity for the asset in conventional financial markets.
