XRP News Today: Institutional Demand Lags, Retail Traders Hold Firm; BTC Hits $113k

XRP Faces an Uncertain End to the Third Quarter as Altcoins Shine

XRP faces stern resistance at $3 as the delay to spot ETF approvals shifts investor focus to cryptos enjoying institutional demand. The token closed out the Thursday, August 28, session in the red, bucking the broader market trend.

This week, news broke of Coinbase (COIN) reporting more than a 50% drop in XRP holdings. Analysts speculated that Coinbase cut its XRP holdings because of a lack of demand.

Coinbase may have cut its holdings on the assumption that demand may not pick up until October, a potentially pivotal month for XRP.

Nate Geraci, President at NovaDius Wealth Management, remarked:

“XRP currently 3 largest crypto asset by market cap… Approx $180bil. Larger than BlackRock. Interesting b/c it seems like most hated or disparaged crypto asset. Help me understand this.”

Amicus curiae attorney and CryptoLaw founder John E. Deaton responded:

“XRP is the single most hated crypto by institutional and professional traders/holders. XRP is the most loved crypto by retail investors/holders.”

The absence of institutional demand has contributed to the recent price volatility and pullback from July’s all-time high of $3.6606. Sticky institutional money is vital for price stability.

Despite the views on institutional and professional investors, XRP has gained 42% year-to-date (YTD) in 2025, leading BTC (20%) and ETH (35%).

However, Cronos (CRO) has soared 126% YTD, including a 103% surge this week alone. News of Trump Media’s raising $6.42 billion to acquire Cronos triggered the breakout to a three-year high of $0.39, underscoring the importance of institutional investors.

Can a BlackRock iShares XRP Trust Launch Fuel an XRP Surge?

Will October mark a historic turning point for XRP? The absence of a sizeable institutional purchase leaves XRP in the hands of the SEC once more. Since the Ripple case ended on August 22, XRP has fallen 4.6%. The SEC dashed hopes of an immediate approval of pending spot ETF applications, delaying the decision on several spot ETFs until October.

The delay pushes back the timeline for a potential influx of much-needed institutional money, weighing on XRP.

However, sentiment could shift if BlackRock (BLK) applies for an iShares XRP Trust. The iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA) have been crucial to the success of the crypto-spot ETF market.

IBIT and ETHA have reported total net inflows of $58.2 billion and $13.1 billion, respectively, since launch, driving BTC and ETH to record highs in August 2025.

For context, the second-largest crypto ETFs, Fidelity Wise Origin Bitcoin Fund (FBTC) and Fidelity Ethereum Fund (FETH), have seen total net inflows of $11.8 billion and $2.83 billion, respectively.

The filing for an iShares XRP Trust could give XRP a rubber stamp and change the narrative vis-à-vis institutional interest.

However, investors may have to wait until the SEC rolls out a standardized crypto ETF framework before any filing, another XRP headwind.

This month, prominent crypto commentator Marty Party refuted claims that BlackRock has no plans for an XRP or SOL ETF, stating:

“Correction: After several conversations this is verified as false. […] Both SOL and XRP ETFs are in discussion with BlackRock – timing cannot be confirmed – deadline is October to file.”

XRP Price Outlook: Scenarios for Bulls and Bears

Can XRP join the alt-coin August rally and break above its $3.6606 all-time high? XRP slipped 0.09% on Thursday, August 28, following Wednesday’s 1.43% loss, closing at $2.9685. The token underperformed the broader market, which rose 1.21%, lifting the total crypto market cap to $3.85 trillion.

In the near-term, XRP’s price outlook hinges on several key catalysts, including:

• XRP-spot ETF headlines.
• XRP Treasury Reserve Asset adoption.
• Ripple’s US-chartered bank license application.
• SWIFT-related updates.
• Legislative developments.

Potential scenarios:

• Bearish Scenario: Legislative roadblocks, soft Treasury Reserve Asset demand, OCC declines Ripple’s application for a US-chartered bank license, lawmakers protect SWIFT, or the SEC disapproves XRP-spot ETFs. These factors may push XRP toward its August 3 low of $2.7254.
• Bullish Scenario: XRP-spot ETF approvals, OCC approves US-chartered bank license, rising XRP Treasury Reserve Asset demand, bipartisan support for the CLARITY Act, or SWIFT loses share of global remittance business to Ripple. These factors could send XRP above its record high of $3.6606 (Binance).

October might be XRP’s make-or-break month, likely determining whether XRP breaks out or stalls under regulatory uncertainty. Meanwhile, global macroeconomic developments and Bitcoin price action will influence XRP demand.

Explore our full XRP forecast here for key breakout zones and timing insights.

Bitcoin Rebounds as US Economic Data Ease Stagflation Fears

While XRP slipped on potential delays to spot ETF launches, US economic data boosted Bitcoin (BTC) demand.

According to the second estimate, the US economy expanded 3.3% quarter-on-quarter in Q2, up from a first estimate of 3.1%. The economy had contracted 0.5% in the first quarter.

Additionally, initial jobless claims fell from 234k (week ending August 16) to 229k (week ending August 23), signaling a resilient labor market. The US data also dampened stagflation fears as markets bet on a September Fed rate cut to bolster the economy.

Upbeat data and expectations of a September Fed rate cut fueled demand for risk assets, including cryptos.

Fed Rate Cut Hopes Drive BTC-Spot ETF Inflows

Market optimism for a more dovish Fed rate path has revived the appetite for US BTC-spot ETFs. BTC-spot ETF issuers reported total net inflows of $81.4 million on Wednesday, August 27. On Thursday, August 28, the US BTC-spot ETF market looks set to extend its inflow streak to four sessions.

Excluding BlackRock’s iShares Bitcoin Trust (IBIT) flows, total inflows reached $115.2 million. According to Farside Investors, key flows included:

• ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $79.8 million.
• Bitwise Bitcoin ETF (BITB) had net inflows of $25 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) and Grayscale Bitcoin Mini Trust (BTC) saw combined net inflows of $10.4 million.

Despite the potential four-day inflow streak, the US BTC-spot ETF market has seen total net outflows of $686.2 million, leaving BTC well below its record high of $123,731 (August 14).

BTC Price Outlook: US Inflation, the Fed, and Spot ETFs in Focus

BTC gained 1.17% on Thursday, August 28, reversing Wednesday’s 0.46% loss to close at $111,270. Despite Thursday’s gains, BTC fell short of the crucial $115,000 mark for the fifth consecutive session.

Looking ahead, several key events may influence the near-term price outlook. These include:

• US economic data: the Personal Income and Outlays Report.
• Fed speakers: hawkish or dovish.
• Legislative developments on Capitol Hill.
• BTC-spot ETF flows.

Potential scenarios:

• Bearish Scenario: Legislative roadblocks, hotter-than-expected US inflation, hawkish Fed rhetoric, or ETF outflows. A combination of these may push BTC toward the psychological $100,000 support level.
• Bullish Scenario: Bipartisan support for the CLARITY Act, softer US inflation, dovish Fed signals, and ETF inflows. In this case, BTC could target the record high of $123,731.

Key Market Drivers: Data, Regulation, and ETF Flows

Traders should closely monitor the following key events to determine whether XRP and BTC rebound:

• XRP-spot ETF developments.
• Legislative developments: The CLARITY Act.
• US economic data: Supports rate cuts or tempers bets on a Fed pivot.
• ETF market flows: Flow trends crucial for BTC’s supply-demand balance.

See where analysts expect XRP and BTC to head in the coming months as regulatory and economic risks evolve.