XRP ETF Inflows Hit $1.5 Billion Milestone Amid Valuation Losses

• US-listed XRP spot ETFs reached a cumulative net inflow milestone of $1.5 billion, marking a historic high for institutional demand in the category.
• Total net assets currently stand at $988.7 million, revealing a $511 million gap driven by valuation losses from XRP's 71% decline from its July 2025 peak.
• Monthly creation activity has cooled sharply by over 90% since May, with July net inflows contracting to just $12.3 million.
• Regulatory catalysts, specifically the CLARITY Act, and stablecoin expansion via RLUSD listings in Korea are identified as key variables for future capital flows.

US-listed exchange-traded funds tracking XRP have collectively surpassed the $1.5 billion mark in cumulative net inflows as of late July 2026. This milestone reflects consistent institutional interest in regulated exposure to the digital asset, despite a challenging market environment. However, the current total net assets across the seven products stand at only $988.7 million. This discrepancy highlights a significant $511 million gap between lifetime inflows and current asset values, which is attributed entirely to valuation losses rather than investor redemptions.

The token price has declined substantially since its July 2025 high of $3.66, trading near $1.07 in late July. This represents a drop of approximately 71% from the peak and more than 40% year-to-date. Despite the price weakness, fund holdings have continued to increase, indicating that capital inflows are outpacing the erosion of asset values. The funds collectively hold approximately 978.9 million XRP, which constitutes less than 1% of the token's maximum supply of 100 billion coins.

The concentration of capital within the sector is heavily skewed toward a few major issuers. Bitwise leads the complex with roughly $500 million in cumulative inflows, followed by Canary Capital at $467 million and Franklin Templeton at $422.4 million. Together, these three issuers account for approximately 93% of the category's lifetime creations. Franklin Templeton's XRPZ was notably the only product to attract fresh capital in the latest session, recording $584,710 in daily net inflows on July 29 .

Monthly creation activity has contracted sharply following an early surge in the spring. Net inflows slowed from $131 million in May to $59 million in June, and further dropped to approximately $12.3 million in July. This represents a decline of more than 90% over two months. Six sessions in July showed no net creations, underscoring a significant cooling in institutional momentum .

What Is Driving Future XRP ETF Demand?

Future demand for XRP ETFs is heavily tied to regulatory clarity and legislative breakthroughs. Base-case modeling assigns a 45% probability to cumulative inflows reaching only $1.55 billion by the fourth quarter of 2026. This conservative forecast reflects the current cooling in monthly creation activity and the absence of immediate catalysts .

A potential legislative breakthrough, specifically the CLARITY Act, could significantly alter this trajectory. The act aims to provide a statutory commodity framework for XRP, which could lift monthly creations above $100 million and push cumulative inflows toward $2.2 billion . However, Senate action on the bill was delayed on July 27, requiring seven to nine additional Democratic votes before the August 7 recess. This regulatory path remains a central variable for the next leg of XRP ETF demand .

Beyond ETFs, Ripple is expanding the utility of its RLUSD stablecoin through treasury-style rebalancing between Ethereum and the XRP Ledger. The circulating supply of RLUSD now exceeds $1.5 billion combined across both networks. Strategic listings on major Korean exchanges, including Upbit and Bithumb, aim to deepen won-denominated access and liquidity in Asia .

How Is XRP Performing Technically and Fundamentally?

XRP price rebounded toward $1.10 on July 30, driven by renewed ETF inflows and institutional adoption. Aviva Investors, a UK asset manager overseeing approximately $350 billion, announced plans to offer a tokenized share class of its USD Liquidity Fund on the XRP Ledger. This move provides the network a regulated payments narrative separate from pure token speculation .

Technically, the asset faces resistance near current levels. XRP traded slightly below the daily chart's Bollinger Bands 20-day middle line at $1.0975. A daily close above that level would place XRP back in the upper half of the Bollinger range, with the next visible target at the upper band of $1.1395 .

Momentum indicators remain neutral. The daily relative strength index stood at 47.58, marginally below its signal line. On the 4-hour chart, the Supertrend indicator remains bearish, and the Chaikin Money Flow reading is negative at minus 0.15. This indicates that capital continues to leave the asset despite the recent price recovery .

Alternative investment products also show volatility. The XRPI ETF, which utilizes CME XRP futures, has posted significant losses since its inception in May 2025. The fund's NAV declined by 62.22% since inception, reflecting the broader market downturn and the unique risks associated with futures-based exposure.

Liquidation clusters near $1.10 and $1.065 could shape the token's next short-term move. A break through $1.10 potentially triggers short liquidations, while sellers remain active near resistance levels. The sustained inflows into spot ETFs demonstrate that institutional investors are prioritizing regulated exposure, even as the broader market experiences a bearish environment .