XRP kicked off 2025 impressively, benefiting from a capital influx of $214 million into ETF funds, a significant legal victory with the SEC, and the Hidden Road deal.
XRP has become a standout phenomenon in the cryptocurrency market in 2025, outperforming major rivals thanks to an effective combination of soaring ETF capital flows, groundbreaking legal developments, and Ripple Labs' ambitious expansion strategy.
Institutional capital flows have surged thanks to the ETF wave
According to the recently released Q1/2025 XRP Market Report, XRP has stood out as one of the best-performing assets, maintaining upward momentum amid a volatile market and outperforming most major cryptocurrencies. 'Throughout Q1, XRP surpassed both BTC and ETH – at one point rising nearly 50% in early February,' the report stated.
The breakout of XRP is strongly driven by the wave of ETF products. XRP-based investment funds recorded a capital inflow of $37.7 million just in the past week, bringing the total year-to-date to $214 million – just $1 million short of surpassing the total capital inflow into global Ethereum funds.
ETF activities related to XRP have made significant progress, with Franklin Templeton filing an S-1 for a spot XRP ETF in the US, CME announcing plans to launch XRP futures contracts, and the Brazilian Securities Commission approving an ETF fund specialized in XRP. Notably, Teucrium’s 2x Long Daily XRP ETF launched with a trading volume of $5 million, ranking in the top 5% of the highest-performing new ETFs globally.
The $1.25 billion Hidden Road deal strengthens the institutional position
Ripple's acquisition of Hidden Road – one of the largest mergers in the history of the cryptocurrency industry – has affirmed its strong ambition to expand in the institutional finance sector. 'Hidden Road will integrate the XRP Ledger into its post-trade process – including the FX market, swaps, and repo market – to reduce operational costs and enhance efficiency,' Ripple confirmed.
More importantly, Ripple's RLUSD stablecoin will be used as collateral in Hidden Road's product suite, helping Ripple's infrastructure to be integrated deeper into the institutional value chain.
The legal turnaround with the SEC paves the way for the future
Legally, the SEC has taken significant steps by withdrawing its appeal against Ripple, while also agreeing to reduce the fine from $125 million to $50 million and requesting the court to lift the previous trading ban.
This development coincides with positive policy changes from the new US administration, including the repeal of SAB 121 – the SEC's previous restrictive guidance regarding digital assets, updates to crypto custody guidance from the OCC, and adjustments to federal deposit insurance policy (FDIC).
Ripple has announced that the recently released market report is the final report in its current format, due to data having been misused by the previous SEC leadership. From now on, updates on XRP will be publicly announced, along with holding information on the company's official website.
