XRP ETF Inflows Reach $1.5 Billion Despite Valuation Losses

• US-listed XRP spot ETFs have reached $1.5 billion in cumulative net inflows, marking a new milestone for demand in the category.
• Total net assets across the seven products stand at $988.7 million, representing only 1.48% of XRP’s market capitalization .
• The $511 million gap between lifetime inflows and current assets reflects valuation losses rather than investor redemptions .
• Monthly creation activity has cooled sharply, with inflows contracting by more than 90% from May to July .
• Regulatory uncertainty remains high, as the CLARITY Act remains stalled in the Senate with the August 7 recess approaching.

US-listed XRP spot ETFs have recorded $1.5 billion in cumulative net inflows, marking a new milestone for demand in the category . However, this milestone contrasts with a weaker price tape; total net assets across the seven products stand at $988.7 million, representing only 1.48% of XRP’s market capitalization . The $511 million gap between lifetime inflows and current assets is attributed to valuation losses rather than investor redemptions, as fund holdings have continued to increase even as the token price declined .

At the time of the snapshot, XRP was trading near $1.07, approximately 71% below its July 2025 high of $3.66 and down more than 40% year-to-date in a bear market . Monthly creation activity has cooled sharply after an early surge: net inflows slowed from $131 million in May to $59 million in June and about $12.3 million in July, a contraction of more than 90% over two months . Six July sessions showed no net creations, and total fund turnover was minimal .

Why Are XRP ETF Inflows Diverging From Price Performance?

Bitwise leads the complex with roughly $500 million of 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, collectively holding about 978.9 million XRP, which is less than 1% of the 100 billion maximum supply . Base-case modeling suggests cumulative inflows may reach only $1.55 billion by the fourth quarter unless a legislative breakthrough, such as the CLARITY Act, occurs to lift monthly creations above $100 million .

Spot XRP ETFs pulled in $14.86 million over the past week, according to BankXRP . Bitwise led with $10.15 million, bringing its cumulative total to $511 million, while Franklin Templeton added $4.70 million, pushing its running total to $426 million . BankXRP noted that these inflows indicate institutions are still buying despite the price drop . Looking at July as a whole, XRP ETFs took in $27.29 million, marking four straight months of inflows, though this is slower than April’s $81.59 million and May’s $131.94 million .

How Will Regulatory Clarity Impact Future XRP ETF Demand?

Future demand hinges on regulatory catalysts. Base-case modeling assigns a 45% probability to cumulative inflows reaching only $1.55 billion by the fourth quarter . A legislative breakthrough, specifically the CLARITY Act, could lift monthly creations above $100 million and push cumulative inflows toward $2.2 billion . The Act would provide XRP with a statutory commodity framework, shifting oversight from the SEC to the CFTC .

However, Senate action was delayed on July 27, and supporters may need seven to nine additional Democratic votes before the August 7 recess, making the regulatory path a central variable for the next leg of XRP ETF demand . The CLARITY Act, which would shift XRP oversight from the SEC to the CFTC, remains off the Senate floor schedule with recess expected around August 7 to 10 . Until this legislation is resolved, the broader market remains cautious, keeping XRP pinned between accumulation below and technical resistance above.

XRP is entering one of its toughest months with a four-year August losing streak hanging over its price. According to CryptoRank, XRP has finished every August in the red since 2022, with declines ranging from 8.15% in 2025 to 26.6% in 2023 . However, August is not XRP’s weakest month when looking at its full price history; on average, XRP has gained 0.43% during August, performing better than its average returns in June and February .

Crypto trader Zach Rector believes XRP may not be out of danger yet, warning that August has often been difficult during U.S. midterm election years . Historical data shows XRP recorded August declines of 5% in 2014, 23% in 2018, and 13% during the last bear market . On average, XRP has fallen about 14% during similar periods . If history repeats, Rector expects XRP could revisit the $0.88 to $0.90 range before finding a stronger bottom .

Despite the bearish outlook, a major on-chain signal suggests selling pressure is fading . CryptoQuant data shows that leverage has cooled, reducing selling pressure and improving overall market stability . Chart analyst ChartNerd noted that XRP is approaching its long-term ascending support line that has held since 2020, which could serve as a floor for recovery .

On the daily chart, XRP’s RSI sits at 45.73, a neutral reading, while the 200-day EMA remains near $1.397, sloping downward and sitting about 31% above the current price . A close above $1.093 could open the door to targets of $1.116 and $1.135 . Supply pressure persists as Ripple’s monthly escrow release adds up to 1 billion XRP to circulation, though the company typically returns about 700 million to new escrow contracts .

Concurrently, Ripple has minted $133 million of its RLUSD stablecoin in a single day, significantly increasing liquidity on the XRP Ledger . This move supports Ripple’s strategic shift toward making the ledger a settlement layer for tokenized instruments, evidenced by a 25% rise in wallets holding tokenized real-world assets . The XRP Ledger is also undergoing a technical upgrade to version 3.3.0, introducing six new features that expand developer capabilities and adjust transaction handling .

Wall Street estimates from JPMorgan and Standard Chartered suggest these flows could eventually reach $4 billion to $8 billion, though these figures remain projections dependent on sustained appetite over a full market cycle . Analyst Jake Claver argues XRP could reach $10 based on its cross-border settlement inefficiencies, while WalletInvestor’s models project modest medium-term gains despite recent poor performance . However, XRP’s price action remains constrained near the $1 support level, struggling to break past $1.25 resistance .