Crypto analyst Zach Rector has presented a forward-looking assessment of XRP exchange-traded funds, outlining how institutional allocation could evolve through 2026.
In a recent video shared alongside his post, Rector focused on early capital flows into newly launched XRP ETFs, arguing that current data already points to a meaningful shift in investor positioning within the digital asset market.
According to Rector, the initial weeks following the launch of XRP ETFs have produced inflows that compare favorably with other major altcoins. He noted that roughly $64 million entered XRP ETFs in a single week, exceeding the $13 million recorded for Solana-related products over the same period.
These figures, he explained, are significant because they coincide with notable outflows from Bitcoin and Ethereum investment products, which together saw hundreds of millions of dollars leave the market during that timeframe. In Zach Rector’s view, this pattern reflects a growing appetite for diversified exposure beyond the two largest cryptocurrencies.
2026 XRP ETF Prediction 🚀 pic.twitter.com/4NApF2TStu
— Zach Rector (@ZachRector7) December 29, 2025
Supply Allocation Projections for 2026
Building on these early trends, Rector offered a longer-term projection centered on supply allocation. He stated that approximately 745 million XRP is already held within ETF structures, only six weeks after launch.
Based on the current pace of inflows, he expects XRP ETFs to surpass the 1 billion XRP threshold by the first month of 2026. This, he argued, would represent a rapid consolidation of supply within regulated investment vehicles.
Looking further ahead, Rector projected that between 3 billion and 5 billion XRP could be backing ETFs over the course of 2026. He framed this estimate as equivalent to roughly 3% to 5% of the total XRP supply.
The analyst emphasized that such an outcome would depend on improving market liquidity and a broader return of bullish conditions across digital assets, factors he expects to align as the next market cycle develops.
Shifting Capital Flows in the Crypto Market
Rector’s commentary also addressed broader capital movement within the crypto sector. He pointed to weekly outflows of approximately $782 million from Bitcoin-related products and $102 million from Ethereum products as evidence that investors are reallocating capital rather than exiting the market entirely.
In his assessment, XRP and other altcoins are emerging as beneficiaries of this rotation, particularly through regulated ETF structures that appeal to traditional investors.
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He stressed that the early performance of XRP ETFs should be viewed in context, noting that they are still in the initial phase of market adoption. Even so, Rector argued that the speed at which XRP has accumulated backing within ETFs suggests sustained institutional interest rather than short-term speculation.
Outlook Beyond the Launch Phase
Rector concluded by reiterating that his projections are grounded in observed inflow data and expected market conditions rather than price forecasts. He encouraged viewers seeking deeper analysis to review his extended breakdown, where he explores how ETF demand, supply dynamics, and liquidity trends could intersect through 2026. His central claim remains that XRP ETFs are positioned to become a significant component of the market if current momentum continues.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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