XRP Price Drop Despite Institutional ETF Inflows

This event highlights intricate dynamics between ETF inflows and price movements, with potential bullish scenarios for XRP amid institutional involvement.

XRP experienced a notable price decline at the end of September 2025, amid considerable institutional inflows into newly launched spot XRP ETFs, sparking discussions about its future market trajectory. Speculative positioning remains focused on spot buying associated with these ETFs.

Ripple Labs Inc., led by Brad Garlinghouse, drove XRP’s ecosystem amid the ETF’s launch in the U.S. Institutional investors, including ProShares and Osprey Funds, played pivotal roles in introducing spot-focused products, impacting XRP market sentiment.

The ETF launch attracted record-breaking $37.7 million on its debut day, yet the XRP price fell. This paradox underscores complexities in crypto market reactions, which don’t always align with institutional entry signals, leaving many analysts reassessing the situation.

Financial implications are substantial, with projections of $7-8 billion in capital inflows by year-end, contingent on additional ETF approvals. Cryptocurrency enthusiasts note the potential for positive price adjustments driven by these volumes and upcoming regulatory decisions.

Market sentiments remain divided; proponents foresee an eventual price uptick due to sustained ETF influences. Others remain cautious following the wild volatility historically linked to such debuts, recognizing the “buy the rumor, sell the news” trend.

Experts predict that greater institutional adoption through ETFs could set XRP on a bullish trajectory, reminiscent of previous asset reactions to ETF launches. “The ETF launches have created historic inflows, prompting speculation of a strong rebound despite price correction.” Standard Chartered analysts foresee XRP reaching $5.50 if ETF approval momentum persists.