XRP emerged as one of the standout performers in the crypto market during the first quarter of 2025, according to Ripple Labs’ Q1 2025 XRP Markets Report. Ripple said XRP showed notable relative strength even as the broader market remained volatile, outperforming major assets such as bitcoin and ether. The company noted that XRP climbed nearly 50% at one point in early February, while ETH and SOL trended sharply lower and BTC hovered around break-even.
ETF activity and institutional demand build
Ripple highlighted growing institutional support through exchange-traded products linked to XRP. Globally, XRP investment products saw $37.7 million in inflows, bringing year-to-date inflows to $214 million, just $1 million short of surpassing the global total for ethereum funds. The report also pointed to a series of ETF-related developments: Franklin Templeton filed an S-1 for a U.S. spot XRP ETF, CME announced plans to launch XRP futures, and Volatility Shares submitted applications for three XRP-focused ETFs.
Outside the U.S., Brazil’s securities regulator approved a dedicated XRP ETF. Teucrium’s 2x Long Daily XRP ETF also debuted with $5 million in trading volume, placing it in the top 5% of new ETF launches globally. Together, those developments suggest that investor appetite for XRP-linked products is expanding beyond retail speculation and increasingly drawing institutional attention.
Ripple deepens institutional footprint with Hidden Road acquisition
Ripple also underscored its strategic expansion through the $1.25 billion acquisition of Hidden Road, described as one of the largest mergers in crypto history. According to Ripple, Hidden Road will eventually use the XRP Ledger to streamline parts of its post-trade operations across foreign exchange, swaps, and repo markets, with the goal of cutting costs and improving efficiency.
The company added that its stablecoin, RLUSD, will serve as collateral across Hidden Road’s product suite. That move could help embed Ripple’s infrastructure more deeply into institutional financial workflows, extending the company’s role beyond payments and into broader market plumbing.
SEC appeal withdrawn as U.S. regulatory outlook improves
On the regulatory front, Ripple said the U.S. Securities and Exchange Commission has withdrawn its appeal in the long-running case and agreed to reduce the penalty from $125 million to $50 million, while asking the court to lift the injunction. For XRP, which has spent years under legal pressure, the development marks a major shift in sentiment.
Ripple also cited broader policy changes under the new U.S. administration, including the repeal of SAB 121, updated OCC guidance on crypto custody, and policy adjustments at the FDIC. Taken together with ETF momentum and the Hidden Road acquisition, Ripple framed the current moment as a turning point for regulatory clarity and institutional adoption in the U.S. crypto market.