Even so, the XRP Spot ETFs launched in November still manage more than $1 billion in assets, while discussions around the Clarity Act in Washington could soon provide regulatory support. This raises the key question: are the conditions for a sustainable recovery taking shape — or is the worst still ahead?
“Ripple Is Not Fighting Banks”: Can Garlinghouse Bridge Crypto and TradFi?
Against the backdrop of a dispute between Coinbase and parts of the US banking sector over stablecoin revenues — a conflict that has slowed the passage of the Clarity Act — Ripple CEO Brad Garlinghouse is opting for de-escalation.
“Ripple has always been focused on building bridges between traditional finance and the crypto industry,” he said in an interview with Fox Business.
After the recent crash, regulatory clarity in the US could become an important signal not only for XRP but for the broader crypto market. Garlinghouse himself puts the probability of the Clarity Act being passed by the end of April at 90%. There is indeed renewed momentum in Washington, as reports suggest the White House has set a deadline of March 1 to resolve the dispute over stablecoin revenues.
According to sources, behind closed doors the discussions are increasingly focused less on fundamental disagreements and more on specific wording in the draft legislation. The US administration is playing an active role, with representatives from crypto firms, lobbying groups, and major banking associations at the table. In the past, TradFi players in particular had warned about risks associated with stablecoin mechanisms.
If a compromise is ultimately reached, it could pave the way for institutional capital and help establish XRP as a regulated asset within the US financial system.
ETFs, Outflows, and Hidden Potential
Meanwhile, XRP Spot ETFs continue to face net outflows. While the funds posted steady inflows in the first weeks after their approval in November, they have lost around $46 million over the past four trading weeks. Net assets under management fell from $1.52 billion to $1.02 billion, reflecting both capital outflows and the sharp decline in the XRP price.
Still, there is a positive angle even in these negative figures. Despite the sell-off, the ETFs continue to control nearly 1.2% of the total circulating XRP supply — just three months after launch. By comparison, Ethereum Spot ETFs, which have been trading for 19 months, hold about 4.7% of ETH’s circulating supply and attracted significantly lower inflows in their early months.
This may point to above-average interest in XRP from Wall Street at an early stage. Rayhaneh Sharif-Askary, Head of Product and Research at Grayscale, supports this view:
“Financial advisers are constantly being asked about XRP by their clients. In some cases, it is the second most discussed asset after Bitcoin.”
Over the long term, the current outflows could prove to be only a temporary snapshot. If regulatory uncertainty in the US is resolved and institutional confidence returns, XRP ETFs will already have built a solid foundation. An additional boost could come if major players such as BlackRock or Fidelity launch their own XRP funds. For now, most products are still issued by smaller providers like 21Shares and Canary Capital.
What’s Next for the XRP Price?
Several analysts still do not see a clearly established bottom after the recent sell-off. A potential “worst-case scenario” around $0.85 is being discussed if another major liquidation event hits the market. Among the possible triggers for further downside are geopolitical tensions in the Middle East and renewed trade conflicts that could weigh on the broader crypto market.
At the same time, other observers point to rare RSI signals. On both weekly and monthly timeframes, the indicator is trading below levels seen during the 2020 COVID crash. Historically, such extreme oversold conditions have sometimes been followed by strong rebound moves — especially as XRP has at times shown greater resilience than Bitcoin and Ethereum in recent months.
Steven McClurg, CEO of Canary Capital, also believes that certain crypto assets could partially decouple from Bitcoin over time. In his view, XRP could benefit from the megatrend of tokenization, and in 2026 he expects double-digit percentage growth to be more likely for the Ripple coin than for Bitcoin.
Nevertheless, the recent crash showed that XRP has not yet been able to fully escape the pull of Bitcoin’s decline. Whether this thesis will ultimately hold remains to be seen in the coming months.
