XRP Spot ETF Inflows Hit $1.5B Milestone Amid Valuation Losses

• US-listed XRP spot ETFs recorded $1.5 billion in cumulative net inflows, yet total net assets dropped to $988.7 million due to significant valuation losses.
• Monthly creation activity has contracted by over 90% since May, falling from $131 million to just $12.3 million in July .
• On-chain data reveals record-low exchange inflows and surging withdrawal activity, signaling exhaustion of sell-side pressure.
• Institutional sentiment remains nuanced, with Grayscale CEO trimming GXRP stake as derivatives markets show mixed signals.
• Future demand heavily depends on the passage of the CLARITY Act, which could establish a statutory commodity framework for the asset .

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

Fund holdings have continued to increase even as the token price declined . At the time of the latest data snapshot, XRP was trading near $1.07 . This represents a drop of approximately 71% from its July 2025 high of $3.66 and a decline of more than 40% year-to-date .

Monthly creation activity has cooled sharply after an early surge in the market . Net inflows slowed from $131 million in May to $59 million in June . By July, inflows contracted further to approximately $12.3 million, marking a decline of more than 90% over two months .

Six sessions in July showed no net creations, and total fund turnover remained modest at about $10.35 million . Bitwise leads the complex with roughly $500 million in cumulative inflows . Canary Capital and Franklin Templeton follow with $467 million and $422.4 million, respectively .

The top three issuers account for about 93% of the category’s lifetime creations . Base-case modeling suggests cumulative inflows may reach only $1.55 billion by the fourth quarter .

Future growth is heavily dependent on legislative breakthroughs . The CLARITY Act, which would provide a statutory commodity framework for XRP, is viewed as a primary catalyst . Senate action on the act has been delayed, and supporters may require seven to nine additional Democratic votes before the August 7 recess .

A legislative breakthrough could lift monthly creations above $100 million and push cumulative inflows toward $2.2 billion . Conversely, without such regulatory clarity, inflows may remain stagnant .

Ripple’s stablecoin unit is expanding RLUSD, a dollar reserve token operating on Ethereum and the XRP Ledger . On-chain data shows liquidity being redistributed between chains .

Ethereum supply rose by 36.5 million tokens over seven days, while the XRP Ledger saw marginal contraction . This rebalancing targets venues with stronger exchange demand, such as Korean exchanges like Upbit and Bithumb .

A partnership with Notabene aims to embed RLUSD in institutional payment rails . This provides the XRP Ledger with a regulated stablecoin usage case separate from token speculation .

XRP is entering August with on-chain indicators suggesting a reduction in sell-side pressure . Monthly inflows to Binance have dropped to a record low of approximately 3.6 million XRP .

This trend indicates that holders are increasingly unwilling to move tokens to exchanges for sale . Withdrawal transactions have surged to account for 55.6% of XRP activity on Binance .

This is the highest share since February 2021 . Deposits have fallen to multi-year lows, pointing to a structural change in holder behavior .

Despite these positive on-chain signals, broader market context remains cautious . August is historically XRP's flattest month, with average returns of just 0.43% .

Institutional demand remains tepid . Spot XRP ETFs attracted only $19.6 million in net inflows during July .

Derivatives data presents a complex landscape . While the long-short account ratio on Binance indicates more accounts are betting on price rises, top traders show a more cautious stance .

Futures volume has decreased by 18.74% over the past day . Grayscale CEO Peter Mintz sold approximately $53,394 worth of GXRP ETF shares .

This sale occurred as XRP ETF inflows have slowed and GXRP remains down more than 50% for the year .

Adoption metrics remain strong despite price stagnation . Data from Santiment indicates that XRPL non-empty wallets have crossed 8 million for the first time in two weeks .

This growth in network usage contrasts with the bearish price action and insider selling .

T. Rowe Price’s Active Crypto ETF, ticker TKNZ, began trading on NYSE Arca on July 16, 2026. The fund’s eligible list includes 17 assets, including XRP and DOGE .

The management fee is 0.75% net of a waiver through May 31, 2027 . The fund utilizes StoneX and Virtu for liquidity support .

This structure allows for tactical tilts into altcoins when on-chain usage and flows support it . Investors should verify current holdings, as day-to-day portfolios may differ from the eligible menu .

The market is now waiting to see if the lull in selling pressure can be matched by a genuine rebound in demand . A sustainable bullish trend requires more than just fading sell pressure .