XRP ETFs Reach $1.5B Inflows Amid Valuation Losses and Institutional Rotation

• US-listed XRP spot ETFs have reached $1.5 billion in cumulative net inflows, though total net assets stand at $988.7 million due to significant valuation losses rather than investor redemptions.
• Weekly data reveals a distinct institutional rotation, with XRP-linked funds attracting $14.86 million in fresh capital while Bitcoin ETFs posted $61.53 million in outflows.
• Monthly creation activity has contracted over 90% from May to July, but a legislative breakthrough via the CLARITY Act could potentially lift monthly creations above $100 million.
• The top three issuers, Bitwise, Canary Capital, and Franklin Templeton, collectively account for 93% of the category’s lifetime creations, holding nearly 979 million XRP.

US-listed XRP spot ETFs have reached a significant milestone of $1.5 billion in cumulative net inflows, marking a new all-time high for demand in the category. However, the total net assets across the seven products currently stand at only $988.7 million . This $511 million gap is attributed to valuation losses rather than investor redemptions.

Fund holdings have continued to increase even as the token price declined, indicating that the assets are being held rather than sold (). At the time of the snapshot, XRP traded near $1.07, which is approximately 71% below its July 2025 high of $3.66 .

Monthly creation activity has cooled significantly after an early surge. Net inflows slowed from $131 million in May to $59 million in June, and further to about $12.3 million in July . This represents a contraction of more than 90% over two months, with six sessions in July showing no net creations .

Despite the monthly slowdown, weekly data for July 27–31 showed XRP ETFs attracting $14.86 million in net inflows. This placed XRP among the week’s strongest-performing crypto investment products alongside Ethereum, contrasting sharply with Bitcoin ETFs outflows which saw $61.53 million.

The activity suggests investors are rotating capital between major digital assets rather than exiting the market entirely. This selective positioning highlights sustained institutional interest in XRP despite broader market volatility and mixed weekly ETF performance .

Who Are the Top XRP ETF Issuers?

Provider-level activity shows differing strategies among major asset managers. Bitwise leads the complex with roughly $500 million in cumulative inflows .

Canary Capital follows with $467 million, and Franklin Templeton holds $422.4 million . Together, these three issuers account for about 93% of the category’s lifetime creations .

The funds collectively hold about 978.9 million XRP, which is less than 1% of the 100 billion maximum supply. Grayscale also offers a passively managed XRP Trust ETF, designed to provide familiar access for investors seeking exposure without the operational complexities of direct token storage .

How Is the CLARITY Act Affecting XRP ETF Demand?

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 Senate is rushing to pass the 616-page Clarity Act to establish a regulatory framework for digital assets. The bill distinguishes between cryptocurrencies sold to raise money for an enterprise, treated as securities under SEC oversight, and those not controlled by a person or company, like Bitcoin, which are regulated as commodities by the CFTC .

This structure is intended to provide clear market rules for investors and banks, reducing the risk of regulatory whipsawing . However, the legislation contains significant provisions that critics argue create financial risks .

One major issue is a loophole that allows crypto exchanges to offer rewards to stablecoin holders, effectively bypassing prohibitions on stablecoin issuers paying interest . Additionally, the bill exempts decentralized crypto networks from anti-money laundering and know-your-customer rules .

Senate action on the bill was delayed, making the regulatory path a central variable for the next leg of XRP ETF demand . The regulatory environment remains a critical factor for institutional capital allocation in the coming months.

Separately, Ripple’s stablecoin unit is expanding RLUSD, a dollar reserve token operating on both Ethereum and the XRP Ledger . On-chain data shows liquidity being redistributed, with 15 million newly minted RLUSD on Ethereum recently . Korean exchanges Upbit and Bithumb have integrated RLUSD via the XRP Ledger, deepening won-denominated access for retail users .