XRP Draws $1.37 Billion ETF Inflows as CLARITY Act Progress Gains Focus

Ripple’s XRP is drawing renewed attention as 'institutional inflows' tied to spot exchange-traded funds (ETFs) accelerate sharply, even as the token’s price action remains technically neutral. Market participants are increasingly framing the next leg for XRP around a single macro catalyst: whether the U.S. Congress advances and ultimately passes the proposed 'CLARITY Act', legislation widely viewed as pivotal to clarifying the asset’s regulatory standing.

As of May 17, XRP was trading around $1.42, up 1.26% over the past 24 hours, according to CoinMarketCap. The token’s market capitalization stood near $88 billion, with roughly $1.22 billion in daily trading volume. Momentum signals are mixed: the relative strength index (RSI) hovered near 49, indicating a neutral posture, while the MACD has crossed above its signal line—often interpreted as a tentative short-term bullish shift. Analysts broadly point to the $1.47–$1.50 zone as the key near-term resistance band; a clean break above that range could open pathways toward $1.60 and $1.72. On the downside, $1.36 is widely cited as an immediate support level.

XRP’s recent trading pattern underscores the market’s sensitivity to policy headlines. The token surged to roughly $1.55 in April amid optimism tied to the CLARITY Act, marking a two-month high before retreating on profit-taking.

The more consequential development, however, is unfolding in ETF flows. KuCoin, citing SoSoValue data, reported that cumulative net inflows into spot XRP ETFs have exceeded $1.37 billion so far, including a day that logged $18.4 million in net subscriptions. May is on pace to become the strongest month of the year for XRP ETF inflows, signaling what some analysts describe as a transition from retail-driven volatility to more sustained 'structural accumulation' by institutions.

By assets under management (AUM), XRP has risen to the third-largest position among crypto ETF-linked products, behind Bitcoin (BTC) at more than $59 billion and Ethereum (ETH) above $13 billion. XRP’s AUM was cited around $1.25 billion, topping Solana (SOL) at roughly $1.05 billion.

Some market observers have leaned on Wyckoff-based interpretations to argue that XRP is in an 'accumulation phase', where so-called smart money gradually builds positions while broader public attention is muted. They point to prior periods—particularly the extended range between roughly $0.28 and $0.79 from 2022 into early 2024—where prolonged consolidation ultimately preceded a sharp move higher, suggesting the current setup could rhyme with past cycles if macro conditions align.

Still, the regulatory variable remains dominant. The proposed CLARITY Act has advanced through the U.S. Senate Banking Committee and is now awaiting further action, including a broader vote. If passed, market participants believe the bill could strengthen the case for XRP to be treated more explicitly like a 'commodity' under U.S. law, effectively reinforcing the legal clarity Ripple has argued for since its courtroom win in 2024. For institutional allocators—banks, pensions, and large asset managers—such clarifications can be as important as price itself, potentially removing a key barrier that has limited participation.

Greater certainty could also encourage additional XRP-based ETFs and exchange-traded products (ETPs), creating a feedback loop in which improved access supports liquidity, which in turn can deepen institutional positioning. In a weekly note, CaptainAltcoin said that if legislative momentum continues and XRP can establish itself above the $1.50 resistance level, a move toward the $2.00–$2.10 range before the end of May cannot be ruled out.

Longer-term projections remain highly scenario-dependent. MEXC Research outlined a range of potential 2031 outcomes: a base case of $4 to $6, and a bullish case of $10 to $15 that assumes broad adoption of XRP for cross-border payments and institutional settlement. The same outlook also presented a bearish scenario of $0.70 to $1.20, arguing that demand could weaken if banks opt for stablecoins or proprietary settlement networks instead of XRP-powered rails—highlighting that the asset’s long-horizon thesis ultimately depends on real-world integration of Ripple’s network rather than market ranking alone.

Broader market commentary has also positioned XRP in a competitive mid-risk, mid-return category alongside Solana. In a comparative piece, 247WallSt modeled hypothetical exposure at prevailing prices—around $1.40 for XRP and $86 for SOL—suggesting that both assets could deliver comparable upside under bullish conditions, with XRP’s relative performance hinging on regulatory clarity, ongoing ETF expansion, and growth in tokenized asset activity on the XRP Ledger (XRPL).

That ecosystem narrative is gaining traction. While XRP has often been framed primarily as a speculative token, proponents increasingly emphasize XRPL’s role in tokenization of real-world assets, cross-border payment infrastructure, and institution-oriented settlement rails. In that context, analysts say the current market may be less about short-term trading signals and more about positioning ahead of potential structural shifts—led by U.S. legislative outcomes, proof points from major banking adoption, and tangible expansion of tokenization initiatives on XRPL in the months ahead.