Humiliation for Altcoin #1 in ETF Net Inflows... XRP 'Plunges' 40% Year-to-Date

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The XRP spot ETF has seen inflows for four consecutive months. The cumulative net inflow is approximately $1.5 billion, the highest among altcoin products. However, the price of XRP has fallen by about 40% year-to-date.

According to crypto media outlet BeInCrypto on August 2 (local time), the net inflow into the XRP spot ETF in July was $27.29 million. This marks four consecutive months of net inflows, following $81.59 million in April, $131.94 million in May, and $59.46 million in June. However, the pace of inflows peaked in May and has since slowed down.

Since April, the XRP spot ETF has consistently ranked 1st or 2nd in monthly net inflows. There have been almost no net outflows. This contrasts with several smaller altcoin ETFs, which saw their net inflows halt in July.

The price has not kept pace with ETF demand. Grayscale CEO Peter Mintzberg reported his intention to sell XRP spot ETF shares acquired before listing. The selling price per share is $20.45, which is about half the price received by Grayscale insiders in January. XRP also recently recorded its strongest oversold indicator ever.

Competition for funds is also fierce. The Solana (SOL) spot ETF has attracted approximately $1.15 billion since its launch. In July, it again ranked 2nd in net inflows. The Hyperliquid (HYPE) spot ETF attracted about $293 million in May and June but recorded its first monthly net outflow in July. Net inflows for Bitcoin (BTC) spot ETF and Ethereum (ETH) spot ETF in July were $172 million and $365 million, respectively.

The continuous net inflows into the XRP spot ETF indicate sustained institutional demand. However, the pace of fund inflows has slowed since May. The discrepancy between ETF net inflows and the decline in XRP price continued in July.

[Article Summary]

- The XRP spot ETF attracted $27.29 million in July, marking four consecutive months of net inflows.

- Cumulative net inflows reached approximately $1.5 billion, but the price of XRP fell by about 40% year-to-date.

- Insider share sales, slowing fund inflows, and competition with major cryptocurrency ETFs put pressure on the price.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*