XRP ETF Inflows Hit $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, driven by an early surge in institutional interest.
• Total net assets across the seven products have fallen to $988.7 million, reflecting a $511 million gap caused by valuation losses rather than investor redemptions.
• Monthly creation activity has contracted by more than 90% since May, with inflows slowing to approximately $12.3 million in July.
• XRP is trading near $1.07, down more than 40% year-to-date and 71% from its July 2025 high of $3.66.
• Despite cooling demand, on-chain metrics show growing network adoption with the XRPL crossing 8 million non-empty wallets.

US-listed spot XRP ETFs have reached a significant milestone, recording $1.5 billion in cumulative net inflows. This figure highlights a historical peak in demand for the asset through regulated financial products. However, the total net assets across the seven available products currently stand at $988.7 million. This represents only 1.48% of XRP’s broader market capitalization.

The substantial gap between lifetime inflows and current assets is attributed to valuation losses rather than capital outflows. Fund holdings have continued to increase even as the token price declined sharply. At the time of the latest reporting, XRP traded near $1.07. This price point is approximately 71% below its July 2025 high and down more than 40% year-to-date.

Monthly creation activity has cooled significantly following an early surge. Net inflows dropped from $131 million in May to $59 million in June. Activity further slowed to approximately $12.3 million in July, marking a contraction of more than 90% over two months.

Six trading sessions in July showed no net creations. The largest single-day inflow during this period was just $584,710 into a Franklin Templeton product. This sharp decline suggests waning immediate demand despite the historical cumulative milestone.

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. The top three issuers account for about 93% of lifetime creations. Collectively, these funds hold approximately 978.9 million XRP, which is less than 1% of the 100 billion maximum supply.

How Is XRP ETF Demand Shifting?

Base-case modeling assigns a 45% probability that cumulative inflows will reach only $1.55 billion by the fourth quarter. This projection assumes no significant changes in market dynamics or regulatory frameworks. Investors are currently observing a divergence between historical demand and current market value.

The sustained inflows in the past demonstrate growing confidence in XRP as a mainstream digital asset. This trend highlights a shift toward regulated products, even as secondary market trading activity slows. Retail investor sentiment remains cautious due to ongoing price volatility.

Future inflow growth is viewed as heavily dependent on regulatory clarity. Specifically, the CLARITY Act is identified as a key driver for future demand. A legislative breakthrough could provide a statutory commodity framework and potentially lift monthly creations above $100 million.

Senate action on the act was delayed on July 27. Supporters may need seven to nine additional Democratic votes before the August 7 recess. This makes the regulatory path a central variable for the next leg of XRP ETF demand.

What Do Derivatives and On-Chain Metrics Show?

Derivatives data for XRP presents a mixed picture for near-term price movement. Futures volume has decreased by 18.74% to $2.11 billion. Open interest remains relatively stable at $2.45 billion, indicating a pause in aggressive positioning.

On Binance, the long-short account ratio stands at 2.64, and on OKX it is 3.06. These figures indicate that a majority of retail accounts are betting on a price rise. However, top traders on Binance show a long-short ratio of 1.60 by position size. This suggests larger, more sophisticated traders are more cautious than retail accounts.

Liquidation data shows $1.86 million in total losses over the past 24 hours. Long positions took the heavier hit, reflecting the pressure on bullish bets. Technical analysts point to distant targets like $6.40 and $30 based on macro retest patterns.

These targets require breaking prior highs first, which has not occurred. Despite price stagnation, adoption metrics remain positive. Data from Santiment shows holder counts climbing as the XRP Ledger crosses 8 million non-empty wallets.

In corporate news, Grayscale CEO Peter Mintz sold 2,611 shares of the GXRP XRP ETF. The sale was worth approximately $53,394, though he retains a significant stake of 2.84 million shares. This transaction highlights caution among major stakeholders even as the fund continues to operate.

The current market dynamic reflects a mix of steady holder growth and soft ETF demand. Short-term action is likely dependent on support levels near $1.04 and the $1.00–$1.02 zone. A daily close below this area would strengthen the bearish structure. ETF inflows provide a constructive long-term signal, but recent daily purchases are too small to alter the short-term trend without broader market sentiment improvement.