The post Why XRP’s ETF Rollout Looks Nothing Like Bitcoin’s appeared on BitcoinEthereumNews.com.

Altcoins XRP’s arrival in the ETF market is forcing asset managers to rethink some long-held assumptions about how crypto products gain traction with institutions. Instead of relying on a rising market or a familiar cycle narrative, XRP-linked funds are attracting capital under far less supportive conditions – and that, according to issuers, is precisely what makes them unusual. Key Takeaways XRP ETFs are attracting capital despite a weaker crypto market, signaling demand beyond speculation. Asset managers see XRP following a distinct ETF adoption path, separate from Bitcoin and Ethereum. Early inflows suggest institutions view XRP as a diversification and infrastructure-focused allocation.  In most cases, crypto ETFs flourish when sentiment is already strong. That was certainly true for Bitcoin, whose ETF approval unlocked years of pent-up institutional demand during a favorable market backdrop. Ethereum followed a different, slower path, with early flows muted before interest gradually built. XRP’s experience does not line up with either precedent. Despite a broadly weaker crypto market, XRP ETFs have already pulled in around $1.12 billion in assets. For fund managers, the significance lies not in competing with Bitcoin’s historic debut, but in the timing. Capital is arriving when risk appetite across crypto is fading, not expanding. That contrast is reshaping how XRP is being discussed inside institutional allocation conversations. Why Asset Managers See a “Third Model” According to Matt Hougan, XRP ETFs are following what he describes as a distinct third model. Instead of feeding off speculative momentum, these products appear to be gaining traction based on perceived utility, diversification value, and long-term infrastructure relevance. Hougan has noted that reaching the billion-dollar mark in a soft market environment is rare. In his view, the same level of demand during a strong crypto cycle would likely have translated into far larger inflows, suggesting that current allocations…

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Filed under: News - @ December 21, 2025 12:14 pm