Institutional Investment in XRP Despite Negative Sentiment
Institutional investment in XRP has surged despite a broader market downturn. A recent $43.89 million inflow into XRP exchange-traded funds (ETFs) marked the highest in two weeks, pushing cumulative ETF holdings past $1.2 billion. The trend highlights a growing divide between retail caution and institutional confidence in the digital asset.
Meanwhile, a major financial milestone was reached as abrdn launched the first tokenized U.S. dollar money market fund on the XRP Ledger (XRPL).
On December 23, XRP ETFs saw a single-day inflow of $43.89 million, the largest in fortnight. This influx contributed to total ETF holdings surpassing $1.2 billion, reflecting persistent institutional demand. The figures contrast sharply with retail investor behaviour, where negative sentiment and reduced exposure have been evident.
Social media commentary around XRP has turned increasingly bearish, yet institutional players appear undeterred. Their continued accumulation suggests a long-term perspective, prioritising fundamentals over short-term market fluctuations.
In a separate development, global investment firm abrdn introduced a tokenized U.S. dollar money market fund on the XRP Ledger. The move represents the first fund of its kind on the platform, expanding the XRPL’s role in decentralised finance and asset tokenisation. Ripple supported the initiative with a $5 million investment, reinforcing its broader strategy to integrate real-world assets into blockchain-based systems.
The fund’s launch aims to improve settlement efficiency and reduce operational barriers for institutional participants. By leveraging the XRPL, abrdn seeks to streamline transactions and enhance liquidity for traditional financial products in a digital format.
The tokenized money market fund marks a significant step in XRP’s institutional adoption. With Ripple’s backing and sustained ETF inflows, the asset continues to attract large-scale capital despite short-term market pessimism. The developments point to a widening gap between institutional strategies and retail investor sentiment.
