XRP ETF Inflows Reach $1.5B Milestone Despite Bearish Technicals and Price Slump

• XRP spot ETFs have recorded $1.5 billion in cumulative net inflows, yet total net assets stand at $988.7 million due to significant valuation losses rather than investor redemptions .
• Monthly creation activity has cooled sharply, contracting over 90% from May to July, with Bitwise, Canary Capital, and Franklin Templeton accounting for the majority of lifetime inflows .
• XRP is trading near $1.07, down 43% year-to-date, as analysts highlight a historic oversold momentum signal weakest in 13 years .
• Regulatory uncertainty regarding the CLARITY Act remains a key headwind, with the legislation currently stalled in the Senate ahead of an August 7 recess .

XRP is trading between $1.06 and $1.08 on August 4, 2026, marking a 43% decline for the year . The token has consolidated in a narrow range of $1.00 to $1.19 for nine weeks following a drop from $1.30 in June . Despite the bearish technical outlook, spot XRP ETFs have recorded positive net inflows for four straight months . In the week leading to early August, ETFs pulled in $14.86 million, with Bitwise leading at $10.15 million and Franklin Templeton adding $4.70 million . July’s total inflows reached $27.29 million, though this is significantly lower than April’s $81.59 million and May’s $131.94 million .

US-listed XRP spot ETFs have achieved a milestone of $1.5 billion in cumulative net inflows, though total net assets across the seven products are valued at $988.7 million . The $511 million gap between inflows and current assets reflects valuation losses, as fund holdings have continued to increase even as the token price declined . At the time of analysis, XRP was trading near $1.07, down more than 40% year-to-date and 71% from its July 2025 high . Monthly creation activity has contracted significantly, falling from $131 million in May to $59 million in June and approximately $12.3 million in July . This represents a decline of over 90% over two months .

Why Is XRP Trading Near $1.07 Despite Strong ETF Inflows?

XRP is trading between $1.06 and $1.08, down approximately 43% for the year, with the 200-day EMA still sloping lower . Crypto analyst Cryptollica noted that XRP’s monthly momentum has hit its weakest point in more than 13 years, deeper than corrections seen in 2014, 2018, 2020, and 2022 . The token is currently testing a long-term support level that has historically attracted buyers, determining whether a recovery or further slide occurs . Spot XRP ETFs pulled in $14.86 million over the past week, with Bitwise leading inflows at $10.15 million (bringing its total to $511 million) and Franklin Templeton adding $4.70 million (total $426 million) . This marks four straight months of inflows, though July’s total of $27.29 million was significantly slower than earlier in 2026 .

Technically, XRP’s RSI sits at 45.73 on the daily chart, a neutral reading . The token trades below its 50-period and 100-period moving averages on the 4-hour chart . A close above $1.093 could target $1.116 and $1.135, while the 200-day EMA at $1.397 remains a significant resistance, approximately 31% above current prices . Supply pressure persists as Ripple typically unlocks up to 1 billion XRP monthly, returning about 700 million to new escrow contracts, leaving 200–300 million new tokens in circulation . Regulatory uncertainty remains high as the CLARITY Act, which would shift oversight from the SEC to the CFTC, remains off the Senate floor schedule ahead of the August 7–10 recess .

In contrast, spot Bitcoin ETFs attracted $244.42 million in net inflows, their third consecutive day of positive flows . Ethereum ETFs also saw gains, recording $60.86 million in net inflows, with BlackRock’s ETHA leading at $50.34 million . Bitwise’s portfolio shift was distinct, exiting $3.58 million from its XRP ETF while adding nearly $12 million to Bitcoin and Ethereum ETFs . This activity coincided with price recoveries for Bitcoin and Ethereum, while XRP lagged, falling 1.10% to $1.05 and remaining down 43% year-to-date .

How Do Ripple's Escrow Releases and Regulatory Delays Impact Price?

The legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) officially concluded in August 2025 when both parties filed a Joint Stipulation of Dismissal, dropping all appeals . The case, initiated in December 2020, alleged that Ripple raised approximately $1.3 billion through unregistered securities offerings . The final judgment required Ripple to pay a $125.04 million civil penalty specifically related to institutional XRP sales, while preserving the landmark 2023 ruling by District Judge Analisa Torres . That ruling distinguished between programmatic sales on public exchanges (not securities) and direct institutional sales (securities violations) .

Structurally, XRP remains the native asset of the XRP Ledger (XRPL), a decentralized blockchain launched in 2012 using a consensus protocol rather than Proof-of-Work . The network settles transactions in 3–5 seconds with low fees, processing approximately 1,500 transactions per second . XRP has a fixed maximum supply of 100 billion tokens, created at launch, with a small amount burned as transaction fees . Ripple holds approximately 32.44–32.9 billion XRP in escrow, which releases 1 billion monthly, with 700 million typically re-locked to prevent market flooding . Circulating supply stands at approximately 62.5 billion XRP .

Future demand hinges on legislative developments . Base-case modeling suggests cumulative inflows may reach only $1.55 billion by Q4, but a breakthrough with the CLARITY Act could push monthly creations above $100 million and total inflows toward $2.2 billion . The Act, which would shift oversight from the SEC to the CFTC, faces a delay until after the August 7 Senate recess . Additionally, Ripple’s stablecoin RLUSD is expanding its presence, with $712 million circulating on Ethereum and $873 million on the XRP Ledger . Recent listings on Korean exchanges like Upbit and Bithumb aim to deepen retail access and integrate RLUSD into compliance-focused payment rails .