XRP ETF Inflows Reach $1.5 Billion Amid Valuation Losses

• US-listed XRP spot ETFs have reached $1.5 billion in cumulative net inflows, establishing a new high for demand in the category.
• Total net assets across the seven products stand at only $988.7 million, reflecting significant valuation losses rather than investor redemptions.
• Monthly creation activity has cooled sharply, contracting by more than 90% over two months as the token price declined.
• Future demand growth is heavily contingent on the passage of the CLARITY Act, which would provide a statutory commodity framework for XRP.
• On-chain data indicates growing network adoption with XRPL wallet counts rising, though short-term price action remains constrained by a lack of renewed ETF demand.

US-listed XRP spot ETFs have recorded $1.5 billion in cumulative net inflows, establishing a new high for demand in the category. However, total net assets across the seven products stand at only $988.7 million . The $511 million difference 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 .

XRP is currently trading near $1.07, approximately 71% below its July 2025 high of $3.66 . The token is down more than 40% year-to-date as of early August 2026 . Monthly creation activity has cooled sharply following an early surge . Net inflows slowed from $131 million in May to $59 million in June . Activity further contracted to approximately $12.3 million in July .

Six July sessions showed no net creations, representing a contraction of more than 90% over two months . Bitwise leads the complex with roughly $500 million of cumulative inflows . Canary Capital follows with $467 million, and Franklin Templeton accounts for $422.4 million . The top three issuers account for about 93% of the category’s lifetime creations .

What Drives the Divergence Between Inflows and Net Assets?

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

Senate action was delayed on July 27 . Supporters may need seven to nine additional Democratic votes before the August 7 recess . The regulatory path remains a central variable for the next leg of XRP ETF demand . The gap between lifetime inflows and current assets underscores impact of price depreciation on fund valuations.

Fund holdings continue to increase despite the token price decline . This structural dynamic highlights the difference between cumulative demand and current market value . The divergence serves as a reminder that ETF inflows do not always correlate directly with immediate price appreciation . Investors must consider valuation risks when evaluating cumulative creation data .

How Are Institutional Investors and On-Chain Metrics Responding?

Grayscale CEO Peter Mintzberg sold a small portion of his GXRP ETF shares for the first time (). An SEC filing shows he sold 2,611 shares worth about $53,394 through Cantor Fitzgerald . After the sale, Mintzberg still holds roughly 2.84 million GXRP shares . He originally received these shares directly from the issuer in a private cash deal in October 2024 .

The sale comes at a time when XRP ETF inflows have slowed overall . GXRP remains down more than 50% for the year so far . Futures volume is falling, but long-short ratios lean bullish on most exchanges . Holder growth is steady, but ETF flows are soft .

Data from Santiment shows holder counts continuing to climb even as prices stay range-bound . The XRPL crossed 8 million non-empty wallets for the first time in the past two weeks . SoSoValue reported a net inflow of $584.71K into XRP-related funds . This represents a modest but positive sign for demand .

XRP holders are increasingly moving tokens off exchanges, signaling exhaustion in selling pressure. Monthly inflows to Binance have dropped to a record low of approximately 3.6 million XRP . Withdrawal transactions accounted for 55.6% of activity on the platform in late July . This share is the highest since February 2021 .

Market-wide withdrawals reached 54%, with deposits falling to multi-year lows . This trend implies that holders are less willing to move assets to exchanges for sale . The structural shift suggests a significant reduction in immediate sell pressure . However, this metric tracks transaction counts rather than net accumulation .

What Do Derivatives Data and Seasonality Suggest for August?

Derivatives data provides a mixed outlook for XRP. On Binance, the long-short account ratio is 2.64 . On OKX, it is 3.06 . These figures indicate that more retail accounts are betting on a price rise . However, top traders on Binance show a long-short ratio of 3.07 by account . Their position size ratio is only 1.60 .

This suggests that larger traders are more cautious than smaller retail accounts . Liquidation data over the past 24 hours shows $1.86 million in total losses . Long positions took the bigger hit at $1.21 million . Technical analysts point to potential measured-move targets of $6.40 and $30 . These targets depend on breaking above prior highs .

August has historically been XRP's flattest month . It averages minimal returns and has closed red for four consecutive years . Institutional demand remains subdued throughout this period . Spot XRP ETFs attracted only $19.6 million in net inflows throughout July . Zero inflows occurred on more than half the trading days .

The bullish on-chain setup faces headwinds from seasonal and institutional factors . Whether the exhaustion of selling pressure can be matched by renewed demand will determine XRP's trajectory . Short-term price action will likely depend on whether it can hold support . ETF demand must pick back up to drive further price appreciation .

The altcoin sits at a mix of crosscurrents right now . On-chain data indicates growing network adoption . However, short-term price action remains constrained by a lack of renewed ETF demand . The regulatory path remains a central variable for the next leg of XRP ETF demand .