XRP ETF Net Assets Diverge From $1.5B Inflows Amid Valuation Losses

• US-listed XRP spot ETFs have recorded $1.5 billion in cumulative net inflows, yet total net assets across seven products stand at only $988.7 million due to significant valuation losses from price declines.
• Monthly creation activity has cooled sharply, contracting over 90% from May to July, with Bitwise, Canary Capital, and Franklin Templeton leading the complex.
• XRP trades near $1.07, approximately 71% below its July 2025 high of $3.66, reflecting a broader market downturn that impacts fund valuations.
• Ripple is expanding RLUSD stablecoin utility through strategic partnerships with Notabene and listings on Korean exchanges like Upbit and Bithumb.

US-listed XRP spot exchange-traded funds have reached a significant milestone, recording $1.5 billion in cumulative net inflows since their launch. Despite this steady stream of capital entering the products, the total net assets across the seven available funds currently stand at just $988.7 million. This $511 million gap between inflows and net assets is entirely attributed to valuation losses rather than investor redemptions, as fund holdings have continued to increase even as the underlying token price declined.

At the time of the latest data snapshot, XRP was trading near $1.07. This price point is approximately 71% below its July 2025 high of $3.66 and represents a year-to-date decline of more than 40%. The persistent gap between cumulative inflows and total net assets highlights the severe impact of this price action on the funds' valuations.

Monthly creation activity has cooled significantly following an early surge in demand. Net inflows fell from $131 million in May to $59 million in June, and further to approximately $12.3 million in July. This marks a contraction of over 90% in monthly creation activity over a two-month period. Six trading sessions in July showed no net creations at all, with July 29 recording only $584,710 in inflows into a Franklin Templeton product.

The landscape is dominated by 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. These top three issuers account for about 93% of the category’s lifetime creations. The funds collectively hold approximately 978.9 million XRP, representing less than 1% of the 100 billion maximum supply.

What Drives XRP ETF Demand?

Base-case modeling suggests a 45% probability that cumulative inflows will reach only $1.55 billion by the fourth quarter. However, a legislative breakthrough regarding the CLARITY Act could lift monthly creations above $100 million and push cumulative inflows toward $2.2 billion. This makes regulatory developments a central variable for future demand.

While ETF inflows have been a primary focus, Ripple is simultaneously expanding the utility of its RLUSD stablecoin. The stablecoin unit is operating on both Ethereum and the XRP Ledger, with on-chain data indicating liquidity is being redistributed rather than simply increased. Over the past seven days, Ethereum supply rose by 36.5 million issued tokens against 25.3 million burned, lifting the network’s circulating RLUSD value to more than $712 million.

The XRP Ledger remains the larger venue with about $873 million in circulation, though its seven-day balance was marginally contractionary due to a net burn of 3.3 million tokens. This pattern indicates treasury-style rebalancing between chains, moving inventory toward venues where exchange demand or settlement usage is strongest.

Korean exchanges have emerged as a critical part of this demand channel. Upbit, South Korea’s largest crypto exchange by volume, listed RLUSD on July 28, enabling deposits and withdrawals through the XRP Ledger alongside markets against the won, Bitcoin, and Tether. Bithumb followed on July 29 with its own XRP Ledger integration.

Ripple is also pushing RLUSD into compliance-focused rails through a partnership with Notabene, a transaction-infrastructure provider processing over $2 trillion in annual value. This deal aims to embed RLUSD in Notabene Flow and evaluate inclusion in Ripple’s institutional payment network. Additionally, Ripple launched Mint, a single platform allowing institutions to access, mint, redeem, and manage RLUSD via web console and API.

How Does RLUSD Expansion Impact XRP?

This rollout ties XRP Ledger activity to a regulated payments narrative, providing a stablecoin usage case separate from pure token speculation. The launch of Mint signals a shift toward regulated payments rather than relying solely on the volatility of the XRP token itself. By integrating with major compliance providers and leading Asian exchanges, Ripple is attempting to stabilize demand for its ecosystem assets.

Despite the expansion in stablecoin utility, the XRP ETF market continues to grapple with the effects of the broader crypto downturn. The sharp cooling in monthly creation activity suggests that investor enthusiasm has tempered in the face of significant valuation losses. While cumulative inflows remain substantial, the rate of new capital entering the funds has slowed considerably.

The divergence between inflows and net assets serves as a clear indicator of the market conditions. Investors have continued to buy into the funds, but the value of those holdings has been eroded by the decline in XRP's price. This dynamic places the funds in a unique position where they are accumulating more tokens even as their total market value shrinks.

Looking ahead, the potential for renewed growth in ETF inflows hinges largely on regulatory clarity and market recovery. A legislative breakthrough could significantly alter the trajectory of monthly creations, potentially reversing the current downward trend in demand. Until such developments occur, the funds are likely to remain in a state of cautious accumulation.