XRP began 2026 on a strong note, gaining 18% within the first week. The rally is largely driven by the XRP ETF launch, which has strengthened investor sentiment.

Three key factors drive this increase in price:

• Spot XRP ETF inflows exceeding $1 billion,
• A decline in XRP supply on exchanges, and
• Better regulatory clarity followed the resolution of the SEC lawsuit in August 2025.

Together, these factors have been responsible for the XRP ETF’s impact on price so far in 2026.

Understanding What’s Already Happened

XRP’s spot ETFs have attracted strong institutional interest, with consistent inflows even during broader market weakness. As a result of many crypto exchange reserves plunging to multi-year lows, there is a noticeable supply-demand imbalance. A substantial regulatory burden that had impacted XRP prices for years has been eliminated with the settlement of the SEC lawsuit.

Despite these improvements, XRP closed 2025 down 21%, falling from its July high of $3.66 to around $1.85 by year-end. The price difference shows that, although fundamentals have improved, price action has not yet fully reflected these developments.

What is the XRP ETF?

An XRP ETF (Exchange-Traded Fund) allows investors to gain exposure to XRP’s price movements without directly holding the cryptocurrency. It can be bought and sold through traditional brokerage accounts, offering a regulated way to track XRP’s performance.

Like stocks, XRP ETFs are traded on major exchanges and typically fall into two categories:

• Spot ETFs that hold real XRP, while
• Futures ETFs, which employ derivatives to replicate the price of XRP.

BTC & ETH ETFs Performance In 2026

U.S. spot BTC and ETH ETFs began 2026 under pressure, recording combined outflows of nearly $750 million in the first full trading week of the year. BTC ETFs led the decline, posting four consecutive days of outflows despite a strong single-day inflow earlier in the week. Large funds such as BlackRock’s IBIT saw the biggest withdrawals, reflecting short-term caution among institutional investors.

ETH ETFs performed slightly better but still ended the week in the red. Early inflows were offset by heavier selling toward the end of the week, resulting in net weekly outflows. Major ETH-focused funds also experienced capital exits, mirroring broader market uncertainty.

Overall, while BTC and ETH ETFs continue to hold a meaningful share of their respective market capitalizations, early 2026 flows suggest consolidation rather than fresh accumulation, contrasting with the momentum seen in newer crypto ETF products.

XRP ETFs Performance in 2026

XRP ETFs have shown resilience in early 2026, standing out against the weaker performance of Bitcoin and ETH ETFs. The five-spot XRP ETFs recorded $38.1 million in net inflows for the week ending January 9, while weekly trading volume reached a post-launch high of $219 million, according to SoSoValue data. This sharp rise in activity signals growing investor participation despite broader softness in the crypto ETF market.

Trading volume nearly doubled compared to the previous week, indicating increasing interest in XRP-based investment products. Among the issuers, Canary Capital’s XRPC leads in assets under management, followed by Bitwise, Franklin Templeton, Grayscale, and 21Shares, indicating a relatively balanced distribution across providers.

Since their launch in mid-November 2025, XRP ETFs have attracted $1.22 billion in net inflows, bringing total assets to $1.47 billion, accounting for 1.16% of XRP’s market capitalization.

XRP Price Prediction: Factors That Could Lead XRP Price to Reach Beyond $5 in 2026

1. Regulatory Framework Clarity

The U.S. Senate is reviewing the crypto market structure bill, with a final vote expected in early 2026. When the House passed the bill in July 2025, XRP rallied sharply, underscoring the asset’s sensitivity to regulatory clarity. Full approval would reduce compliance barriers and make XRP more viable for institutional portfolios.

2. Faster ETF Expansion

XRP ETFs have already attracted over $1 billion since launch. With the SEC‘s updated listing rules significantly shortening approval timelines, more XRP ETFs are expected to enter the market in 2026, increasing institutional access and sustained demand.

3. Growing Use in Cross-Border Payments

XRP’s strongest use case lies in live banking transactions. A large share of RippleNet’s partner institutions now use XRP for real-time settlements, moving beyond trials and creating recurring transactional demand.

4. RLUSD Supporting Institutional Adoption

Ripple’s stablecoin, RLUSD, enables banks to settle transactions using a stable asset while XRP provides liquidity between currencies, addressing volatility concerns that previously slowed adoption.

5. Improving Macro Conditions

Expected interest rate cuts in 2026 could increase liquidity and investor risk appetite, historically a positive backdrop for crypto assets.

6. Potential Banking License Approval

Ripple’s application for a U.S. banking charter could open XRP to pension funds and insurance firms, significantly expanding its institutional investor base.

Conlcusion

Overall, XRP enters 2026 with stronger fundamentals than in previous years, supported by ETF-driven demand, clearer regulation, expanding real-world use cases, and tighter supply. These fundamental changes put XRP in a better position for long-term growth, even though near-term price fluctuations may remain unpredictable. As a result, its long-term prospects are increasingly dependent on institutional adoption and acceptance rather than on speculation alone.

Frequently Asked Questions (People Also Ask)

1. Will ETF increase XRP price?

Although it doesn’t guarantee long-term gains, an XRP ETF can boost demand by making the asset more available to institutional and retail investors, thereby driving price growth.

2. What will happen to XRP if it becomes an ETF?

If XRP is available through ETFs, it would gain wider market exposure, improved liquidity, and stronger institutional participation under a regulated structure.

3. What will cause XRP prices to rise?

XRP prices may rise due to a combination of ETF inflows, increased real-world usage in cross-border payments, reduced circulating supply, and clearer regulation.

4. Will XRP hit the 100% prediction?

While a 100% price increase is possible in strong market conditions, XRP’s performance will depend on adoption, market sentiment, and broader crypto trends rather than fixed predictions.