21Shares says XRP (XRP) now has stronger legal and institutional foundations, but growing XRP Ledger activity may not automatically translate into higher token demand.
Key Points:
- U.S. spot XRP ETFs have attracted more than $1.7 billion in cumulative net inflows since their late-2025 launch.
- 21Shares bases its XRP case on regulatory clarity, institutional access, measurable utility and a fixed token supply.
- The firm warns that institutions can use the XRP Ledger while holding XRP only briefly, limiting how much network growth reaches token holders.
XRP ETF Demand
21Shares published a new investment case that treats XRP as a bet on blockchain-based settlement infrastructure rather than a direct price forecast. The report arrives after seven U.S. spot XRP ETFs launched from Nov. 2025 and collected about $1.3 billion during their first month.
Cumulative net inflows have since risen above $1.7 billion, even as XRP remains well below its 2025 peak.
Ripple's SEC case ended in Aug. 2025, removing a long-running legal barrier that had complicated access for regulated funds, banks and other institutions. The XRP Ledger settled nearly $500 billion in on-chain value over the past year, while Ripple USD (RLUSD) grew from $72 million to about $1.6 billion and tokenized real-world assets approached $4 billion.
21Shares also points to XRP's fixed supply of 100 billion tokens, all created at launch. More than 14 million XRP have been burned through transaction fees, while scheduled escrow releases continue to increase circulating supply over time.
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21Shares Value Test
The main risk, according to 21Shares, is that rising XRP Ledger use does not guarantee lasting demand for XRP itself. Institutions can move value across the network while holding the token only briefly, meaning settlement activity could expand without producing equal value for long-term holders.
That gap is already part of the market debate.
XRP traded around $1.35 to $1.45 in mid-Sept. despite expanding ETF access, stablecoin growth and wider use of the ledger for tokenized assets. The investment case therefore depends less on raw transaction volume than on whether XRP becomes economically necessary as institutional settlement grows.
Stronger ETF demand provides another source of buying, but it does not resolve the question of how much network activity ultimately accrues to the token.
XRP has already shown how quickly institutional demand and price can diverge. The token rallied nearly 30% in Aug., climbing from about $1.06 to $1.50 before settling near $1.35, while futures trading volume reached its highest level in six months.
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