XRP ETF inflows hit $1.67B in inflows – 3 reasons Ripple’s price still lags
Removing 1.11 billion XRP from circulation has changed supply, though price has barely listened.
The demand for XRP ETFs has shown resilience despite Ripple’s [XRP] struggling market structure. Cumulative Net Inflows reached $1.67 billion by the 31st of August, continuing their upward trajectory since May.
Weekly Net Inflows jumped from $39.78 million to $110.49 million toward the end of August. Weekly Trading Volume also increased from $253.05 million to $363.03 million.
While the fund’s net assets went up to $1.44 billion from $1.33 billion.
However, XRP’s price fell from about $1.70 down to the range of $1.35-$1.40 throughout this time frame. This shows that institutional investors are purchasing all of the available supply.
However, the lack of new demand has allowed institutional sellers to sell down their positions with little to no resistance.
If these institutional investors continue to invest large amounts of money into the space while XRP is stable, it will create a solid foundation for a potential bounce back.
XRP ETFs tighten available supply
Bitwise’s growth is an indicator that XRP ETF demand will be more than just a consistent flow narrative. Within 9 months, its fund crossed $500 million in assets under management (AUM), while the 7 XRP ETFs currently have approximately $1.53 billion combined.
Together, these products are locking up approximately 1.11 billion XRP, hence removing more than 1% of the total supply from immediate circulation. This does matter, as continued ETF accumulation may lead to gradual reductions in available supply.
In turn, this allows future demand to potentially create stronger influences on pricing.
The institutional component adds to the effectiveness of this thesis. This is as Goldman Sachs owns $87.4 million and added over $80 million in quarter-on-quarter (QoQ).
Similarly, Jane Street and Millennium both own approximately $16 million. However, despite this increased demand for the token, it continues to trade at $1.38, demonstrating current demand has yet to exceed broader selling.
XRPC broadens XRP ETF access
The addition of XRPC as an alternative entry point for the U.S. investor into the XRP ETF space represents another level of innovation from XRPC.
Prior to other issuers entering the space, Canary Capital was the first U.S. spot XRP ETF issuer to provide direct, regulated access into the market.
Since then, competition has expanded to other institutions. However, despite that expansion, trading remains concentrated among several products.
Bitwise leads with $19.23 million in volume, followed by Franklin Templeton at $8.94 million. XRPC ranks third with $2.68 million, ahead of Grayscale and REX-Osprey.
This distribution matters because XRP’s ETF market is developing multiple active liquidity venues rather than relying entirely on one fund.
As additional funds begin to trade XRP, increased competition in the space may lead to improved liquidity and greater accessibility. In turn, it may also enhance interest in regulated XRP exposures among a larger group of investors.
Final Summary
- Ripple [XRP] ETF demand stays strong despite weaker price action.
- Growing ETF access and institutional ownership could strengthen XRP demand.
