Ripple’s XRP ETFs Gain Momentum, RLUSD Expands in Middle East

The institutional adoption of XRP reached a significant milestone in mid-November when Canary Capital made history by launching the first spot XRP ETF with 100% exposure to the asset. The product’s debut generated nearly $60 million in trading volume, signaling strong market appetite. Shortly after this successful launch, the US Securities and Exchange Commission approved a similar financial product from Bitwise, which also performed exceptionally well in its initial trading sessions.

The ETF momentum continued as major financial players Grayscale and Franklin Templeton entered the spot XRP ETF arena earlier this week, adding substantial credibility to the asset class. According to data from SoSoValue, the cumulative net inflows into these XRP-based exchange-traded funds have exceeded $640 million since the first product launched just weeks ago. This rapid accumulation of capital demonstrates growing institutional confidence in XRP as an underlying asset.

Market participants now await the anticipated November 29 launch of another XRP ETF from 21Shares, which multiple X users have reported as receiving regulatory approval. This continued expansion of XRP-based financial products represents a significant shift in how traditional finance views Ripple’s native token, moving it further into the mainstream investment landscape.

Ripple’s strategic expansion into the stablecoin market is showing remarkable progress, with RLUSD recently receiving recognition from Abu Dhabi’s Financial Services Regulatory Authority as an accepted fiat-referenced token. This regulatory milestone makes RLUSD eligible for use by authorized individuals licensed by the agency to carry out regulated activities, marking a significant step in Ripple’s Middle East expansion strategy.

Jack McDonald, Senior Vice President of Stablecoins at Ripple, emphasized the importance of this development, stating: “The FSRA’s recognition of RLUSD as a fiat-referenced token reinforces our commitment to regulatory compliance and trust – two non-negotiables when it comes to institutional finance.” This follows earlier recognition from the Dubai Financial Services Authority, which approved the stablecoin as a crypto token within the Dubai International Financial Center earlier this year.

The regulatory approvals have coincided with substantial growth in RLUSD’s market presence, with its market capitalization recently surging above $1.25 billion. While this positions RLUSD as the 83rd-largest cryptocurrency overall, it still trails significantly behind stablecoin leaders USDT and USDC. The stablecoin’s adoption has been bolstered by support from banking giants including BNY Mellon, America’s oldest bank, which embraced RLUSD less than a year after its introduction as a dollar-pegged digital asset.

Despite the positive ecosystem developments, XRP’s price performance has been relatively muted compared to other major digital assets. According to CoinGecko data, XRP posted a modest 1% daily increase to trade around $2.20, contrasting with more substantial gains from Bitcoin and Ethereum during the same period. This divergence between fundamental developments and price action has created interesting dynamics in the XRP market.

Technical analysts remain optimistic about XRP’s short-term prospects. X user Ali Martinez observed that the price rebounded from the lower end of a particular channel located below $2, suggesting this could be followed by a potential rally to as high as $2.60. This technical pattern indicates that despite recent consolidation, XRP may be positioning for a significant upward move.

However, concerning signals have emerged from large investor behavior. Recent data reveals that XRP whales have offloaded approximately 1.5 billion XRP over the past month, with an additional 180 million tokens dumped earlier this week. This substantial sell-off, totaling nearly 1.7 billion tokens, raises questions about whether institutional investors possess information that retail traders lack. The exodus of large holders could trigger panic selling among smaller investors, potentially leading to another market correction despite the generally positive ecosystem developments.