XRP ETFs Surge to Record Flows While Senate Vote Looms Over Regulatory Clarity

XRP ETFs see $26M inflow, Ripple Prime secures $200M credit line, and tokenized Treasury pilot settles in 4.2 seconds — but price remains weak at $1.46.

Institutional appetite for XRP is hitting levels not seen since the turn of the year, even as the token's spot price struggles to break out of a months-long slump. On Monday, US spot ETFs tracking XRP pulled in nearly $26 million in net new capital, the strongest single-day intake since early January. Franklin Templeton accounted for the lion’s share with roughly $13.6 million, pushing the total assets under management for these products past the $1 billion mark. The sustained buying suggests a growing conviction among institutional players that the asset’s long-term value proposition outweighs its near-term price weakness.

The real catalyst for that conviction may arrive this week in Washington. On May 14 at 10:30 a.m., the Senate Banking Committee will debate the CLARITY Act, a draft of which was released on May 12. The bill aims to sharpen stablecoin regulations and, crucially, establish a binding market structure for digital assets. For XRP, the prize is a formal classification as a non-security commodity — a designation that would remove the regulatory fog that has hung over the token for years. The White House is pushing for passage by early July, though bank trade groups like the ABA have voiced objections to certain provisions, notably the Tillis-Alsobrooks compromise on stablecoin yield.

Ripple is wasting no time building the infrastructure to serve that institutional base. On May 11, the company’s brokerage arm, Ripple Prime, secured a $200 million credit line from Neuberger Specialty Finance. The funds are earmarked to expand margin lending for professional clients, a service that has seen rapid growth since Ripple acquired Hidden Road last fall. Ripple Prime now processes over $3 trillion in annual volume across more than 300 institutional accounts, with revenue tripling year-over-year, according to the firm. The in-house stablecoin RLUSD, with a market cap exceeding $1.5 billion, underpins much of that activity.

Technical proof points are also accumulating. On May 6, JPMorgan Kinexys, Mastercard and Ondo Finance completed a pilot on the XRP Ledger that settled a tokenized US Treasury repayment in roughly 4.2 seconds. The OUSG token, which represents $250 million of underlying Treasuries, was returned on-chain before the fiat payout was routed to Singapore via JPMorgan and Mastercard’s traditional networks. The demonstration underscores the ledger’s utility for real-world asset settlement — a use case that could gain further traction if regulatory clarity arrives.

Yet the spot market remains stubbornly detached from these developments. XRP traded at $1.46 on Tuesday, down about 0.9% on the day, though it held above the important $1.45 support level. The token has risen 7.73% over the past month, but it is still down 22.20% year-to-date and well below its 200-day moving average of $1.75. Resistance sits in the $1.48–$1.50 zone, with the relative strength index at 59.2, leaving room for further upside without being overbought. Notably, exchange outflows have been elevated, a pattern often interpreted as accumulation by long-term holders.

The May 14 Senate vote could provide the missing spark. If the CLARITY Act advances and opens a clearer path to commodity status for XRP, analysts see an initial push toward $1.61 and possibly $1.80. Should the legislative momentum stall, the immediate support just below current levels will face the first test. For now, the gap between institutional inflows, technical adoption, and market price has rarely felt wider — or more poised to close.