Recently, there has been an interesting phenomenon: while the overall crypto market experienced a correction in December, XRP spot ETFs continued to attract capital. On-chain data shows that asset management scales are still steadily growing, which is quite distinctive given the bleak overall market environment.

Why is this happening? The key lies in the limited options available to institutional investors. When most crypto assets are still navigating the regulatory gray area, approved spot ETFs become a safe channel for institutional deployment. As one of the few spot ETFs, XRP ETF happens to occupy this position—meeting institutional compliance requirements while providing exposure to crypto assets.

Interestingly, a significant amount of capital has accelerated into this wave of correction. There may be two driving forces behind this: first, institutions are indeed bottom-fishing; second, market expectations of a final settlement between Ripple and the U.S. Securities and Exchange Commission are heating up. The combination of these factors creates a situation where "I fall, you fall, but I steadily attract capital."

However, several points need caution. First, the regulatory landscape remains uncertain, and final rulings could fluctuate. Second, if the price of XRP spot and ETF NAV diverge significantly, arbitrage trading could be triggered. Third, once ETFs for other crypto assets are approved one after another, some of this capital might flow out.

So the question is: do you think this capital influx is mainly driven by institutional demand for compliant channels, or is everyone betting on Ripple's lawsuit turning around?