XRP ETF Cumulative Inflows Reach $1.5B Amid Valuation Losses and Cooling Demand

• US-listed spot XRP ETFs have reached a milestone of $1.5 billion in cumulative net inflows, though total net assets remain at $988.7 million due to valuation losses rather than redemptions.
• Monthly creation activity has cooled sharply, falling from $131 million in May to approximately $12.3 million in July, signaling a significant contraction in institutional demand.
• Grayscale CEO Peter Mintzberg recently trimmed his personal stake in the GXRP ETF, coinciding with a period where XRP prices have declined more than 71% from their July 2025 highs.
• Regulatory catalysts such as the CLARITY Act remain the primary variable for future demand, as Senate action on the legislation is currently delayed.

US-listed spot exchange-traded funds tracking Ripple’s XRP token have achieved a significant milestone, recording $1.5 billion in cumulative net inflows. Despite this aggregate figure, the total net assets stand at only $988.7 million. The $511 million gap between lifetime inflows and current assets reflects valuation losses rather than investor redemptions. Fund holdings have continued to increase even as the token price declined, indicating that outflow in net asset value is driven by market pricing.

XRP was trading near $1.07, which is significantly below its July 2025 high of $3.66. The token is down more than 71% from that peak and has fallen more than 40% year-to-date in a broader bear market. This price underperformance has directly impacted the net asset values of the ETFs, creating divergence between cumulative investor contributions and current portfolio valuations.

Monthly creation activity has contracted by more than 90% over the past two months . Net inflows slowed from $131 million in May to $59 million in June, and further to approximately $12.3 million in July . Six sessions in July showed no net creations, and total fund turnover was modest at $10.35 million .

Bitwise leads the category with roughly $500 million in cumulative inflows, followed by Canary Capital at $467 million and Franklin Templeton at $422.4 million . The top three issuers account for about 93% of the category’s lifetime creations . The funds collectively hold about 978.9 million XRP, representing less than 1% of the 100 billion maximum supply .

What Are the Drivers Behind the Slowing ETF Inflows?

The cooling in ETF inflows contrasts with the strong early performance seen in previous months . July saw 11 out of 22 trading days with no reportable net flows, the highest frequency of zero-flow days observed . This pattern suggests that underlying institutional interest may be waning in the current price environment .

Base-case modeling assigns a 45% probability to cumulative inflows reaching only $1.55 billion by the fourth quarter . However, a legislative breakthrough could lift monthly creations above $100 million and push cumulative inflows toward $2.2 billion . The next major catalyst is the CLARITY Act, which would provide a statutory commodity framework for the asset .

Senate action on the Act was delayed, requiring additional Democratic votes before the August 7 recess . This regulatory uncertainty is a central variable for the next leg of XRP ETF demand . Investors are closely watching for legislative progress that could restore confidence and drive renewed institutional allocation .

How Is Grayscale and Ripple Adapting to the Market Shift?

Grayscale CEO Peter Mintzberg recently sold 2,611 shares of the GXRP XRP ETF worth approximately $53,394 . This marks his first trim of the personal stake he acquired in a private deal in October 2024 . He retains roughly 2.84 million shares, indicating a partial reduction rather than a complete exit .

The sale coincides with a period where XRP ETF inflows have slowed and the GXRP fund is down more than 50% for the year . Short-term price action is likely to depend on holding current support levels and whether ETF demand rebounds . Some analysts are pointing to potential price targets of $6.40 or $30, though these are speculative and depend on breaking well above recent highs .

Concurrently, Ripple’s stablecoin unit is expanding the reach of RLUSD, a dollar reserve token operating on both Ethereum and the XRP Ledger . On-chain data indicates liquidity is being redistributed rather than simply increased, with supply movements showing treasury-style rebalancing between chains . Korean exchanges, including Upbit and Bithumb, have listed RLUSD on the XRP Ledger, deepening won-denominated access for retail users .

Ripple’s partnership with Notabene aims to embed RLUSD in transaction infrastructure processing over $2 trillion of annual value . This ties XRP Ledger activity to a regulated payments narrative separate from pure token speculation . Network adoption metrics such as wallet counts continue to grow, with the XRP Ledger crossing 8 million non-empty wallets .

Derivatives data presents a mixed picture, with high long-short ratios on major exchanges but declining futures volume . The long-short account ratio on Binance is 2.64, suggesting bullish sentiment among retail accounts . However, top traders on Binance show a more cautious ratio of 1.60 by position size . Futures volume has dropped 18.74% to $2.11 billion, and open interest is at $2.45 billion .

New SEC filings indicate that independent investment advisers are beginning to allocate capital to XRP ETFs . These 13F-style holdings disclosures show a clustering of entries across July 15–17, indicating that independent advisers are entering the market within the same reporting window . This pattern is consistent with early product adoption, where allocators test a theme through several vehicles before concentrating capital .