For almost five years, Ripple Labs — the company behind the cryptocurrency XRP — has been in a legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC had accused Ripple of selling XRP as an unregistered security. This meant that large, regulated investors like banks, hedge funds, and publicly traded companies were hesitant or even barred from buying XRP.
On August 7, 2025, both Ripple and the SEC agreed to drop their appeals. This officially ended the case. The recent ruling confirmed that XRP traded on public exchanges is not considered a security in the U.S. For institutions, this legal clarity removes the biggest risk that had kept them away from XRP.
Are Institutions Onboard with XRP?
“Institutional buying” refers to large purchases made by big financial players such as investment firms, hedge funds, or publicly listed companies, as opposed to individual traders. When these large entities buy in, they often do so in large quantities and with a long-term strategy. This can influence price stability and investor confidence.
Since the settlement, reported daily XRP trading volumes have jumped 208%. Volumes have reached about $12.4 billion. While high volumes don’t automatically prove that all the buying is from institutions, it’s a sign that major players may have re-entered the market.
One proven example is Galaxy Digital, a major crypto investment firm. In its latest SEC filing, Galaxy disclosed owning $34.4 million worth of XRP, or about 15.39 million tokens. This is the first time the firm has taken a large position in XRP, and it now ranks among its biggest holdings.
Other institutions have shown interest indirectly. For example, some have applied for new ETFs (exchange-traded fund). Others have launched the custody services to store XRP for clients. However, most institutions have not yet released public data showing actual purchases in August 2025.
Analyst Projects $5B Inflows if XRP ETF Wins Approval
ETF discussions are becoming a major talking point in the XRP market. In an interview with Paul Barron, Steven McClurg, CEO of Canary Capital, suggested that an XRP ETF could attract as much as $5 billion in inflows in its first month if approved.
While this number is only a projection and not guaranteed, it shows growing expectations among market analysts that an ETF could open the door for significant regulated investment into XRP.
Between August 12 and 13, XRP’s price rose from $3.15 to $3.25. There was a brief surge to $3.30 during the day. Most of these gains happened between 12:00 and 20:00, when trading volumes exceeded 140 million tokens.
Sharp, sudden spikes in volume — such as one where over 5.9 million tokens changed hands in a single minute — are often linked to professional trading desks. These players use large block orders to buy or sell without pushing the price too far in one direction.
Support levels held at $3.25–$3.26, while $3.30 became a ceiling (resistance) that the price could not break. This shows that buying was strong but not overwhelming enough to push the market higher in this session.
Institutions Are In — But Not in Full Force Yet
The end of the SEC case has clearly opened the door for institutions. So far, there is a proven record of at least one major player, Galaxy Digital, buying in. Trading patterns of the token also match professional execution styles.
Projections like McClurg’s $5 billion ETF inflow estimate point to the scale of demand that could arrive if regulators approve an XRP ETF. However, on-chain and exchange data show that much of the current activity is still concentrated among existing large holders. Signs of broad new participation are currently very limited.
For XRP’s rally to hold and grow, it will need not just legal clarity but also sustained inflows from both institutional and retail investors worldwide.