The Hottest Trade of 2026 Isn't Bitcoin - It's XRP ETFs

Core Insights - XRP has emerged as a leading cryptocurrency in early 2026, outperforming Bitcoin with a 25% surge compared to Bitcoin's 6% gain [1][10] - The surge in XRP's value is driven by significant institutional investment, particularly through newly launched XRP exchange-traded funds (ETFs) that have accumulated $1.3 billion in assets within 50 days [2][10] Market Dynamics - The XRP ETF market has seen unprecedented demand, with $483 million in fresh capital inflows in December, marking 43 consecutive days of positive inflows [5] - The resolution of Ripple's legal issues with the SEC in August 2025 has removed regulatory uncertainties, enabling major asset managers to launch XRP ETFs [4][10] - XRP is perceived as a "less crowded trade" compared to Bitcoin and Ethereum, leading to a more pronounced price impact from ETF inflows [6] Future Outlook - Analysts predict that continued inflows into XRP ETFs could create supply tightness, potentially removing billions of dollars' worth of XRP from circulation by year-end [7] - Ripple's strategic partnerships and investments, including a $500 million investment at a $40 billion valuation, are expected to enhance XRP's integration into the financial infrastructure [8] ETF Performance - Bitwise XRP ETF (XRP): Market price of $24.38, AUM of $309.7 million, year-to-date increase of 20.6%, fees of 34 bps [12] - Grayscale XRP Trust ETF (GXRP): Market price of $42.27, AUM of $277.8 million, year-to-date increase of 19%, fees of 35 bps [13] - ProShares Ultra XRP ETF (UXRP): Market price of $12.47, year-to-date increase of 37.8%, fees of 164 bps [14] - Volatility Shares Trust XRP 2X ETF (XRPT): Market price of $6.78, AUM of $142.9 million, year-to-date increase of 37.5%, fees of 94 bps [15]