XRP has broken below the $1.50 mark, falling more than 7% over the past week as the token tracks a broader risk-off move across digital assets. The total cryptocurrency market value dropped more than 4% during the same stretch, pushing high-capitalization tokens below crucial support levels.

Flows into exchange-traded funds are among the metrics market watchers lean on in stretches like this, since ETF products are widely treated as a gauge of how large of institutional capital are positioned across an asset class.

According to an analysis published by AMBCrypto, the decline is consistent with wider market weakness rather than token-specific selling pressure. But the report argues that a key divergence may be forming within XRP's current market structure — raising the question of what happens when the market reverts to risk-on. Given XRP's current positioning, the analysis suggests it would not be surprising to see the token lead the charge in the next wave of risk-on flows.

XRP ETF Inflows Run Counter to Bitcoin and Ethereum

Data from SoSoValue shows XRP exchange-traded funds continuing to post net inflows, even as Bitcoin ($BTC) and Ethereum ($ETH) ETFs recorded outflows. XRP ETFs also clocked $67 million in daily trading volume.

The contrast stands out because Bitcoin and Ethereum ETFs are the largest products in the crypto fund complex, and their net flows are commonly read as a broad signal of institutional sentiment. Against that backdrop, steady XRP-side inflows during a risk-off stretch form the divergence at the center of the report.

One notable detail within the flow data: Franklin Templeton is beginning to close the gap with Bitwise in terms of daily volume. Bitwise previously led by a large margin, but Franklin is now catching up — a shift the report says points to growing activity across XRP ETF products overall.

Evernorth Merger Brings 473 Million XRP to Public Markets

The analysis also points to structural developments around the asset. Evernorth has completed its SPAC merger with Armada II, bringing approximately 473 million XRP and $300 million in gross cash proceeds into the public markets. SPAC mergers of this kind let a company go public by combining with an existing listed shell rather than running a conventional IPO — a structure that has become a familiar route for digital-asset treasury vehicles.

For context, the 473 million XRP figure represents the amount of the token that Evernorth holds in its treasury. Through the merger with Armada II, the firm is entering the public markets and providing investors with an alternate avenue for gaining exposure to Ripple's XRP. Notably, Evernorth's merger and the upcoming XRPN trading could mark the beginning of a more significant trend, the report states.

XRPL Upgrade Adds Delegated Key Controls for Institutions

On the fundamental side, the XRP Ledger (XRPL) is also seeing progress. Its latest upgrade introduces delegated key controls for banks, stablecoin issuers, and tokenized funds. In essence, businesses can grant permission to a particular account to approve customers on separate accounts while keeping their primary wallet keys offline.

Key management is a recurring sticking point for regulated firms entering on-chain markets, and arrangements that keep primary wallet keys offline while delegating day-to-day approvals speak directly to that concern. Such a feature could make the XRPL considerably more attractive to institutional players seeking greater control and security over digital assets.

The ledger's emerging agentic economy offers another indicator of increased on-chain activity. According to the report, the XRPL has already achieved a record 13 million, with 166 x402 merchants participating. Agentic payments currently represent approximately 25% of ledger activity, and if that trend continues, the analysis projects the metric is likely to cross the 100 million milestone in roughly 12 months.

More Than Random Capital Rotation?

Taken together, these signals suggest that XRP's recent divergence may be more than a random capital rotation. With Evernorth's merger completed, XRPN trading upcoming, and XRPL activity climbing, the report characterizes XRP's ETF inflows as a more "strategic" capital rotation — even as the broader market faces weakness.

The analysis concludes that should these developments persist and the market turn risk-on, XRP could be well-positioned to lead the next leg of capital rotation. That view, as the report frames it, remains tied to broader market conditions turning favorable. The near-term markers are concrete: whether XRP ETF net inflows continue, how the daily-volume race between Bitwise and Franklin Templeton develops, and when XRPN trading goes live.