XRP ETF Growth Stalls at $1 Billion Milestone

XRP spot exchange-traded funds (ETFs) are growing rapidly, but none have yet surpassed $1 billion in assets under management. According to Bitwise CEO Hunter Horsley, only Bitcoin, Ethereum, and Solana have spot crypto ETFs that exceed this milestone.

Horsley was criticized for leaving out XRP from his initial statement, but he defended it by saying 'It's not biased. It's a fact that there is no $1 billion XRP spot ETF yet.'

The main reason for the slower growth of XRP spot ETFs is the lack of a native staking function on the XRP Ledger, which means they rely solely on spot demand. An alternative being discussed is an XRPL lending protocol, but it's currently undergoing validator voting and isn't reflected in ETF product structures yet.

Despite this, investment demand for XRP spot ETFs is not small, with net assets totaling $1.44 billion and cumulative inflows amounting to $1.66 billion. The Bitwise XRP spot ETF leads the market, holding a 44% market share and $632.03 million in assets under management.

Institutional inflows are also continuing, with recent 13F filings showing an expansion in U.S. institutional investors' allocation to crypto ETFs.