U.S. spot XRP exchange-traded funds have maintained an unprecedented 12-day inflow streak, accumulating $844.9 million in assets under management as of December 2nd. The milestone positions XRP ETFs as the fastest-growing crypto ETF category in the market.
XRP ETFs inflows, Source: SoSoValue
The products pulled in $89.65 million on December 1st, followed by an additional $67.7 million the subsequent day. Major asset managers Invesco and Franklin Templeton have submitted applications to launch their own XRP-focused ETF products.
Spot Solana ETFs now hold $651 million following recent capital inflows. Bitcoin and Ethereum ETFs maintain their dominant positions with $57.7 billion and $12.8 billion in assets, respectively.
Staking Protocol Brings Yield to XRP Holders
The Firelight Protocol has launched a staking-based insurance mechanism for XRP, addressing a long-standing gap in the asset’s ecosystem. Sentora incubated the project with backing from Flare.
XRP has historically lacked native staking or yield-generation options despite its position among the largest cryptocurrencies by market capitalization. Firelight enables token holders to stake their XRP to provide insurance coverage for decentralized finance protocols.
The DeFi sector loses over $1 billion annually to hacks and exploits. Firelight’s insurance model creates economic incentives for XRP holders while addressing security vulnerabilities across DeFi platforms.
The protocol represents a significant development for Ripple’s native token. Stakers can now earn returns by backing protocol security rather than leaving assets idle.
SEC Halts Ultra-Leveraged Crypto ETF Applications
The Securities and Exchange Commission issued nine warning letters to major ETF providers on December 2nd, blocking proposed ultra-leveraged cryptocurrency funds. Direxion, ProShares, and Tidal Financial received notices among other firms.
The regulatory action targets products designed to deliver amplified exposure to volatile digital assets. Several applications sought approval for 5x leveraged funds tracking Bitcoin, Ethereum, and other cryptocurrencies.
Rule 18f-4 of the Investment Company Act of 1940 restricts fund leverage based on value-at-risk calculations. The regulation caps exposure at 200% of a fund’s reference benchmark. Proposed ultra-leveraged products would exceed these limits.
The SEC maintains that extreme leverage poses unacceptable risks for retail investors. Even 3x leveraged products face stringent approval requirements in U.S. markets. Regulators instructed issuers to reduce leverage ratios or withdraw their filings completely.
Source: https://coinpaper.com/12858/xrp-et-fs-explode-to-845-m-in-just-12-days
