New XRP ETF Experiences Record Inflows Amid Price Fluctuations

By Crispus Nyaga
May 17, 2025, 4:00 PM UTC
Edited by Anthony Patrick

Introduction

The recently launched Teucrium 2x Long Daily XRP ETF (ticker symbol: XXRP) has set a new inflow record since its inception in April, even as the price of XRP itself experiences volatility. The ETF has attracted over $106 million in assets, marking a significant milestone for cryptocurrency exchange-traded funds (ETFs).

Record Inflows Confirm Market Interest

In an impressive display of investor confidence, the XXRP ETF has reported consistent asset growth since its debut, with last week noting its highest inflow to date. According to data from ETF.com, the fund added $30.4 million in assets last week, a marked increase compared to the $14.1 million added the previous week. This consistent growth in inflows suggests a robust demand for XRP-backed investment vehicles, distinguishing it in a competitive market.

Comparative Inflows

For perspective, other cryptocurrency ETFs have seen relatively modest asset increase during the same period. The spot Ethereum ETFs have accumulated $2.5 billion since September, while the 2X Solana ETF (SOLT), which launched prior to the XXRP ETF, has garnered only about $30 million. These figures highlight the exceptional market response to the new XRP ETF.

JPMorgan’s projections further underscore the potential for growth in this segment, with the bank forecasting that XRP and Solana ETFs could collectively bring in $15 billion within their first year of operation, predominantly favoring XRP.

Upcoming Regulatory Decisions

Looking ahead, market participants are closely watching the Securities and Exchange Commission (SEC) regarding its decision on another XRP ETF application from Franklin Templeton, which is anticipated in June. There are expectations of possible delays in ETF approvals; however, many analysts are optimistic about eventual approvals for Franklin, Bitwise, and VanEck, given their strategic alignment with an October 15 deadline. Current predictions from Polymarket traders suggest an 83% probability of XRP ETF approvals this year.

ETF Characteristics and Performance

The XXRP ETF operates under a leveraged structure, offering investors the chance to achieve returns that are twice the daily performance of XRP. However, this comes at a premium, as it carries an expense ratio of 1.89%, significantly higher than typical ETFs in the space, such as those related to Bitcoin or Ethereum, which tend to have expense ratios of below 0.50%.

Last week, the ETF mirrored XRP’s performance, declining by nearly 3% as the underlying asset fell by 1.5%. Despite the fluctuations, the XXRP ETF has gained 58% since its launch, while XRP’s performance has been comparatively modest, rising by 15% in the same timeframe.

Conclusion

The XXRP ETF’s record inflows illustrate a vibrant appetite for cryptocurrency investment products in the current market landscape, despite XRP’s price fluctuations. As regulatory clarity continues to unfold, it remains to be seen how this will influence investor sentiment and the trajectory of cryptocurrency ETFs in the coming months. As developers and market analysts navigate this evolving environment, both the ETF’s and XRP’s future performance will be pivotal in shaping investment strategies within the crypto space.

For more updates on cryptocurrency news and market insights, subscribe to our newsletters to stay informed.

Share this article: