XRP ETFs surprise with high institutional demand and billion-dollar volume

• Demand for XRP ETFs may be underestimated
• XRP Futures Contracts Surpass $1 Billion
• High expectations for XRP ETF approval in 2025

Perceptions about demand for XRP ETFs are changing rapidly as market data shows growing interest, especially among institutional investors. Although comparisons with Bitcoin suggest less attractiveness, recent figures suggest a more buoyant scenario than many analysts anticipated.

According to experts, it was never claimed that there was no demand for the asset. The point is that, as it moves away from Bitcoin, traction naturally diminishes. Yet, the recent performance of XRP-related products suggests otherwise. Demand, in practice, may be more robust than previously estimated.

CME Group revealed that XRP futures contracts surpassed the $1 billion mark in open interest in less than four months. This is the fastest regulated derivatives contract to reach this level to date, indicating a significant movement of institutional capital into the cryptocurrency.

Furthermore, XRP ETFs backed by futures contracts already have over $800 million in assets under management. This data reinforces the idea that institutional appetite is far from weak. For Nate Geraci, president of the ETF Store, these volumes demonstrate that interest in XRP-based financial products is more significant than the market realizes.

Bloomberg analysts have previously indicated that the likelihood of XRP spot ETF approval by 2025 is "extremely high." This optimism is also reflected in Polymarket's decentralized market predictions, which indicate an 82% chance of approval this year.

The move follows the trend of diversification among large investors. While Bitcoin ETFs continue to attract the majority of funds, assets like XRP are now part of strategies seeking exposure to other relevant cryptocurrencies. Depending on regulatory developments, XRP ETFs could become one of the most significant launches of the next institutional wave.

XRP price

In the spot market, XRP is currently trading at $2,98, unchanged over the past 24 hours. The cryptocurrency fell to $2,80 after failing to break resistance at $3,40.

Now, according to analyst Ali (@ali_charts), "$XRP failed to break $3,10 and could retreat to $2,83!" Technical analysis indicates another pullback to the $2,83 region if the asset fails to hold above the nearest support levels.

$ Xrp failed to break $3.10 and could retrace to $2.83! pic.twitter.com/1FyAErJ5yc