Exchange-traded funds (ETFs) tracking XRP have demonstrated remarkable performance, attracting over $1.2 billion in net inflows since their launch in mid-November 2025. According to data from SoSoValue, XRP ETFs have recorded net inflows every single trading day except one, significantly outpacing their competitors. During the same period, Bitcoin ETFs experienced outflows of $2.4 billion, while Ethereum ETFs lost approximately $898 million.
However, this strong momentum faces long-term skepticism from some analysts. Brian Huang, co-founder of investment platform Glider, issued a bearish statement, arguing that developer activity is the primary driver of blockchain ecosystem growth. Citing Andreessen Horowitz's (a16z) "developer behavior" data, Huang noted that XRP has received almost no developer interest. "Investment is about growth potential. Developers are the ones who grow the ecosystem; without them, limited growth should be expected," he commented, suggesting institutional investors often don't view XRP as a serious project.
Institutional interest in XRP is partly attributed to Ripple's regulatory compliance approach. Katherine Dowling, President of Bitcoin Standard Treasury Company, stated that XRP could be "one of the most profitable assets" if the Clarity Act passes, highlighting Ripple's recent steps in business partnerships and funding. In November 2025, Ripple increased its valuation to $40 billion through a $500 million funding round involving Citadel Securities, Fortress, Pantera Capital, and Galaxy Digital, and announced a partnership with Mastercard and Gemini for stablecoin payments.
Countering the developer-centric critique, other market players argue that a strong community can be a decisive factor for ETF success. The loyal "XRP Army" community, which has maintained commitment through Ripple's years-long SEC lawsuit, is seen as a primary driver of the ETF inflows. Bitwise CIO Matt Hougan stated, "XRP is generally underestimated... But what determines fund flows is a strong community willing to buy that asset, and the XRP Army is extremely bullish."
The news coincides with a broader improvement in crypto market sentiment at the start of 2026. Santiment data shows renewed retail optimism, with XRP posting a nearly 14% weekly gain. This surge was driven by increased attention around XRP's January escrow unlock, which released 1 billion tokens (with a large portion reportedly re-locked), combined with strong early-year momentum.
