The recently launched XRP exchange-traded funds are defying expectations with remarkable momentum, amassing nearly $900 million in institutional capital within their first three weeks of trading. Multiple asset managers who entered the market beginning mid-November report sustained investor appetite, with all thirteen consecutive trading days posting positive inflows since launch. According to Sandy Kaul, Head of Digital Asset & Industry Advisory Services at Franklin Templeton, the momentum reflects a shift in investor behavior. According to her, money managers are actively seeking exposure to alternative assets with new utility cases. She noted that data from ETF issuers has been “very encouraging,” signaling a wider acceptance of XRP within traditional finance. Stablecoin Integration Strengthens XRP’s Market Case Kaul highlighted that XRP’s appeal is not based solely on ETF activity. She pointed to Ripple’s recently launched stablecoin, RLUSD, as a key factor strengthening the asset’s long-term outlook. Speaking on the Paul Barron Podcast, she said XRP is one of the few major networks with both a native token and an associated stablecoin, giving it a distinct advantage in the evolving payments sector. She explained that the stablecoin market is becoming central to blockchain adoption. As more businesses and consumers move toward Web3 models, automated transactions are expected to scale. These transactions require networks that support rapid, low-cost settlement at high volumes. Kaul said that XRP’s design positions it to handle this shift, especially now that it has its own stablecoin to support liquidity and settlement needs. According to her, a network that offers fast and inexpensive transfers while maintaining a stable built-in asset becomes attractive to enterprises. She noted that this combination strengthens the business case for XRP and its supporting infrastructure. With growing interest in digital payments and tokenized finance, she believes XRP is entering a more competitive phase in the stablecoin landscape. Institutional Legitimacy Gains Pace As interest in XRP ETFs increases, more institutions are assessing their role within diversified crypto portfolios. Kaul said the early signals indicate growing acceptance of XRP as a legitimate asset among large financial firms. She noted that Bitcoin and Ethereum still dominate institutional flows, but XRP is starting to gain recognition in a similar category. At the time of writing, XRP is trading at around $2.02, suggesting a 4.29% decline in the last 24 hours. XRP price chart, Source: CoinMarketCap
