Why XRP price jumped 25% in 2026 as ETF inflows top $1 billion

Core Insights - XRP's price has increased by 25% in the first week of the year, significantly outperforming the broader crypto market, with $1.3 billion invested in XRP exchange-traded funds (ETFs) [1][3] - Regulatory clarity in the US is a major factor contributing to XRP's strong performance, with the potential passage of the Clarity Act seen as beneficial for XRP [2][6] - Ripple has achieved significant business milestones, including a $500 million funding round that tripled its valuation to $40 billion, and partnerships with Mastercard and Gemini [5][6] Investment Trends - XRP ETFs have seen a remarkable $1.3 billion in investments since their launch, with no net outflows recorded, contrasting sharply with other crypto ETFs like Solana, which attracted $420 million, and Bitcoin and Ethereum ETFs that experienced outflows of $2.4 billion and $898 million respectively [3][4] - Analysts believe that the proliferation of ETFs is a key catalyst for increasing investments in XRP, indicating a growing institutional interest in digital assets [4] Company Developments - Ripple's recent strategic funding round included notable investors such as Citadel Securities and Galaxy Digital, enhancing its market position [5] - The partnership with Mastercard and Gemini aims to facilitate stablecoin payments for credit card transactions, further integrating XRP into financial systems [5]