XRP continuously attracts capital through ETFs, but traders are short-selling on a large scale.

An interesting conflict is unfolding around XRP as massive capital flows continue into index funds, while prominent holders publicly express negative opinions. Currently, XRP is trading at $2.06, down 2.36% in the past 24 hours, reflecting a less than favorable market sentiment.

XRP ETFs attract billions of USD, whales continue to accumulate actively

Since trading began in November, five XRP index funds issued by Canary, 21Shares, Grayscale, Bitwise, and Franklin have recorded a cumulative capital inflow of $1.1 billion. The total assets currently managed by these ETFs amount to $1.12 billion, with a notable detail that no capital has been withdrawn since their launch.

According to SoSoValue data, capital inflows have persisted for 20 consecutive days, signaling that institutional investors are actively buying. This suggests that XRP supply could be significantly tightened, potentially pushing prices higher in the future.

Investors are deeply divided on XRP’s prospects

However, not all influential figures are optimistic. ChartFu, a well-known investor on X platform, recently announced a large short position on XRP. This move is seen as a strong bearish signal, indicating he forecasts a price decline in the near future.

Reactions to this decision are also quite varied. Valerioshi, a famous Bitcoin show host, expressed surprise and revealed he is considering buying a large amount of XRP. ChartFu responded by suggesting that better entry opportunities might appear soon, but maintained a short-term negative outlook.

Crypto Xanax, another analyst, even called on everyone to avoid trading XRP, claiming its trading history has been disappointing.

High IQ investors holding XRP – A new trend?

Interestingly, as the short-selling wave spreads, YoungHoon Kim — who is believed to have the highest IQ in the world — has shifted to a deeply optimistic view of XRP. Since December 12, he has repeatedly expressed optimism, including a forecast that XRP could reach $100 within the next five years.

On Twitter, there are arguments suggesting that individuals with higher IQ tend to hold more XRP, implying that this asset attracts deep-tech investors interested in blockchain technology, payment infrastructure, and regulation.

However, not everyone agrees with this view. Peter Brandt recently criticized those who are always optimistic about XRP as lacking information and overly unrealistic. Conversely, XRP supporters counter that this is not just a speculative trend, but a genuine recognition of the project's intrinsic value within the financial industry.

This situation indicates that the XRP market is currently in a transition phase, where institutional capital flows are influenced by differing personal opinions on the future direction of prices.