Ripple’s latest quarterly report reveals that XRP is rapidly gaining ground among institutional investors—thanks in part to increasing interest in crypto ETFs and renewed regulatory clarity. As the first quarter of 2025 comes to a close, XRP has outperformed both Bitcoin (BTC) and Ethereum (ETH) in several key metrics, sparking optimism for what lies ahead.

XRP Outpaces Bitcoin with Strong ETF-Driven Momentum

According to Ripple’s Q1 2025 XRP Markets Report, XRP-based investment products brought in $37.7 million in inflows during the quarter. These inflows bring the year-to-date total to $214 million, positioning XRP just $1 million behind Ethereum in global fund inflows—a significant achievement for the altcoin.

XRP’s performance wasn’t just about ETF interest. The XRP/BTC ratio—a metric tracking the relative value of XRP against Bitcoin—rose more than 10% in Q1, reinforcing the token’s strength in the face of broader market uncertainty. Between November 2024 and early 2025, XRP even gained over 350% relative to Bitcoin, demonstrating just how dramatic its upward momentum has been.

Regulatory Relief Boosts Confidence

Part of XRP’s recent success stems from legal clarity. The U.S. Securities and Exchange Commission (SEC) officially withdrew its appeal in its long-standing case against Ripple earlier this year. This move gave Ripple a significant regulatory win, reducing legal risk and opening the door to greater institutional participation.

With the legal uncertainty easing, Ripple has been able to double down on its efforts to expand the token’s presence in regulated markets. This includes refining its markets report to provide more transparency for investors—a crucial step toward building institutional trust.

XRP Ledger Activity Slows, But Core Metrics Remain Strong

While fund inflows were robust, Ripple’s report acknowledged a slowdown in on-chain activity. The XRP Ledger saw a drop of over 30% in network activity during Q1, in line with broader market trends. Despite this, XRP’s average daily trading volume remained steady at $3.2 billion, indicating consistent interest from market participants.

Ripple also disclosed that as of March 31, 2025, it held 41.69 billion XRP tokens, equivalent to approximately 75.8% of the circulating supply. The company has pledged to provide regular updates on its holdings for the next 42 months, reflecting a shift toward more transparent and institutional-grade disclosures.

Price Outlook: XRP Hovers Near Key Support Level

Despite its strong quarterly performance, XRP has faced short-term price pressures. In April, the token slipped 8% against Bitcoin, and as of early May, it was down another 4%. Currently, XRP is hovering around the $2 mark, which aligns closely with its 200-day moving average (DMA)—a crucial support level.

If XRP manages to hold this support, it could stabilize before making another move upward. But if it falls below, it may face further downside in the near term.

A Long-Term Play for Institutional Investors

Ripple’s strategic overhaul of its reporting and its commitment to transparency suggest that the company is focusing heavily on long-term, institutional adoption. As crypto ETFs continue to gain traction and regulators warm up to clearer frameworks, XRP stands out as one of the few altcoins with a favorable legal status and a growing institutional base.

With the U.S. ETF market expanding rapidly in 2025, XRP’s presence in regulated investment products could offer investors a new path to crypto exposure—without the complications of custody or direct asset management.

Conclusion: XRP’s Institutional Evolution is Just Beginning

Ripple’s updated XRP markets report is more than just numbers—it’s a clear indicator of a shift in strategy. With regulatory clarity, increasing transparency, and growing ETF inflows, XRP is not only holding its own in a competitive crypto market—it’s outperforming some of the biggest names in the industry.

Whether it can maintain this momentum into the summer remains to be seen, but one thing is certain: institutional eyes are firmly fixed on XRP.