Institutional inflows into XRP ETFs are rising, but macroeconomic uncertainty and legislative risks suggest a cautious outlook for the asset in the near term.
Despite strong ETF inflows, XRP faces near-term headwinds from potential Fed rate hike, macro uncertainty, and the looming Clarity Act deadline.
XRP ETFs have recorded eight consecutive weeks of asset growth, led by the $520 million Bitwise XRP ETF. Despite this institutional interest, the cryptocurrency faces significant near-term headwinds from potential Federal Reserve rate hikes and the looming September 15 deadline for the Clarity Act.
Institutional investors are increasing exposure to XRP, which forces fund managers to purchase the underlying asset, potentially helping to stabilize the market and reduce available supply.