XRP Spot ETFs Conquer Wall Street: Billion-Dollar Binance Outflows Signal Institutional Interest

Record Launch for XRP Index Funds

The cryptocurrency market is experiencing a new wave of institutional acceptance: XRP Spot ETFs are emerging as a surprising success on Wall Street. The index fund launched by Canary Capital celebrated a record start on November 13 with trading volume of $58 million ^[1]. Bloomberg expert Eric Balchunas described the Canary and Bitwise Solana ETFs as "in a class of their own," as the third-place ETF trails them by over $20 million ^[1].

Just two weeks after launch, the Canary fund already holds XRP worth $337 million, leading the field of Ripple Spot ETFs ^[1]. In total, the four launched XRP index funds have generated net inflows of $644 million ^[1]. Notably: Bitcoin Spot ETFs had only $760 million in net inflows during their first two weeks of trading—just 18 percent more, despite Bitcoin having a significantly larger market capitalization ^[1].

Growing Competition Among Asset Managers

Following Bitwise ($179 million), Grayscale ($85 million), and Franklin Templeton ($76 million), 21Shares, WisdomTree, and VanEck are planning to launch their own XRP index funds in the near term ^[1]. Another positive indicator: Despite the challenging market environment, there have been no trading days without new net inflows ^[1].

However, two heavyweight players are missing from the XRP ETF market: BlackRock and Fidelity have not announced plans for such products. ETF expert Nate Geraci expressed skepticism: "In my view, it makes no sense at all that they ignore all crypto assets except BTC and ETH" ^[1].

Dramatic Decline in Binance Reserves

Parallel to the ETF success, significant changes are evident in the spot market. XRP reserves on the world's largest cryptocurrency exchange, Binance, have fallen to approximately 2.7 billion tokens according to on-chain data—the lowest level since mid-2024 ^[2]. Since early October, holdings have declined by approximately 3.4 percent ^[2].

Analysts view this development as a bullish signal. "When cryptocurrencies move away from exchanges and into private wallets or cold storage, the amount immediately available in the short term decreases—fewer available tokens correspond to reduced selling pressure," according to an analysis ^[2].

Billion-Dollar Forecasts for 2026

Bloomberg expert James Seyffart is now tracking over 150 ETFs scheduled to launch in the near term—a veritable flood of altcoin ETFs, for which Solana and XRP represent only the first wave ^[1]. A JPMorgan analysis predicts that XRP alone could receive $4 to $8 billion in new capital during its first year of trading ^[1].

An analyst on Cryptoquant summarizes: "The reduced number of tokens available on trading platforms, combined with rising institutional demand, creates a potentially strong environment. Should this trend continue, XRP could enter a phase of growing institutional interest" ^[2].

Opportunities and Risks

Ripple Labs could gain additional momentum by obtaining an official U.S. banking license. Sal Gilbertie, CEO of Teucrium Trading, sees this as an enormous opportunity in terms of improved access to payment networks and custody solutions ^[1].

Nevertheless, risks remain: Strong centralization, dependence on Ripple Labs, and competition from new internal products such as RLUSD should not be overlooked by investors ^[1]. XRP has risen 56 percent over the past year ^[2].