- XRP price rebounded by 11% over the last 24 hours, reaching a $2.22 high by Wednesday morning.
- Strong ETF demand, already nearing $1 billion, has significantly boosted the token’s trading volume.
XRP staged an 11% rally from a $2 low to a $2.22 high in the last 24 hours heading to Wednesday morning (UTC). Its volume also peaked at a similar rate during the period, as it moved around $4.68 billion worth of assets across crypto wallet addresses.
A confluence of bullish fundamentals and technicals has recently driven the token’s price action. One of the primary catalysts was the aggressive acquisition of exchange-traded funds (ETFs) by investors, which is already nearing $1 billion in net inflows.
XRP ETF Flows Gear Up to a Billion Dollars
To date, only four giant institutions offer pure XRP ETFs. These include the following:
- Canary (NASDAQ: XRPC)
- Bitwise (NYSE: XRP)
- Grayscale (NYSE: GXRP)
- Franklin Templeton (NYSE: XRPZ)
Despite that, these issuers have already racked up $824 million in total net inflows since XRP ETFs began trading on US exchanges on November 14 until Tuesday’s market close based on SoSoValue data. Investors notably met these new investment instruments with explosive demand, as the first day of trading alone recorded $243.05 million in net inflows.
The first two days of this week significantly contributed to net inflows, with $89.65 million and $67.74 million on Monday and Tuesday, respectively. Now, everyone is looking for the $1 billion milestone even before XRP ETFs reach their one-month mark.
Vanguard Support on the Crypto ETF Market
Adding fuel to market optimism was Vanguard’s announcement on Tuesday that it would allow trading of crypto ETFs on its platform. This is a big deal, as it is one of the largest investment companies in the world with over $11 trillion in assets under management (AUM).
It’s worth noting that the company has rejected crypto-related products despite the overwhelming success of Bitcoin (BTC) and Ethereum (ETH) ETFs last year. Along the way, it called Bitcoin “an immature asset class that has little history, no inherent economic value, no cash flow, and can create havoc within a portfolio.” This mirrored the sentiment expressed by BlackRock before it eventually recognized the potential of cryptocurrencies to alter the financial landscape significantly. Like BlackRock, Vanguard has finally caved in to growing investor demand, revealing in September that it had changed its plans.
Andrew Kadjeski, Principal and Head of Brokerage & Investments at Vanguard, told Bloomberg that the company’s decision aligned with its clients’ “diverse needs and risk profiles.” Furthermore, he highlighted that the move gives them “the ability to invest in products they choose.”
Vanguard specifically mentioned supporting Bitcoin, Ethereum, XRP, and Solana (SOL) ETFs on its platform. Meanwhile, it denied having any plans to launch its own crypto product.
