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▲ XRP (XRP) ETF/ChatGPT generated image ©
Although a cumulative $1.51 billion flowed into XRP (Ripple) spot ETFs, net assets decreased to $988.78 million, widening the gap between investment and valuation to over $520 million. In July, nearly half of the trading days recorded 'zero' inflows/outflows, indicating that contrary to assessments that institutional demand is being maintained, actual trading was concentrated in a few products.
According to TradingNews, an investment specialized media outlet, on August 3 (local time), US XRP spot ETFs recorded a net inflow of $7.6949 million on July 31, marking the largest daily inflow in July. Bitwise products received $7.1184 million, and Franklin Templeton XRPZ received $576,500, while the remaining five products all recorded 'zero' net inflows. In contrast to the $265.4 million that flowed out of Bitcoin (BTC) spot ETFs on the same day, XRP spot ETFs continued to see net inflows for three consecutive weeks recently.
According to SoSoValue, the total net inflow for July was $27.29 million. Out of 23 trading days, there were net inflows on 10 days, net outflows on 2 days, and no fund movements on the remaining 11 days. This means 48% of the total trading days recorded zero inflows and zero outflows. Monthly net inflows also decreased by about half each month, from $131 million in May to $59 million in June, and $27.29 million in July. The total trading volume for the seven products on July 31 was only $8.62 million.
Currently, the cumulative net inflow for XRP spot ETFs is $1.51 billion, but net assets are $988.78 million, about 34% less. This is not because investors withdrew funds, but rather a result of XRP's price falling by 42% this year, reducing the valuation by approximately $520 million. The holdings of the seven products amount to approximately 970 million to 978.9 million units, which is about 1.56% of the total circulating supply of 62.53 billion units. The proportion of net assets in XRP's market capitalization is also only 1.49%, significantly lower than Bitcoin spot ETFs' 6.08%.
Funds were concentrated in a few asset managers. Bitwise's cumulative net inflow was $511 million, accounting for approximately 34% of the total, followed by Canary Capital's XRPC with $466.97 million, and Franklin Templeton XRPZ with $426 million. The top three products account for 93% of the total inflows. Goldman Sachs diversified its investments across four products, including Bitwise, Franklin Templeton, Grayscale, and 21Shares, totaling approximately $154 million, which represents about 10% of the total cumulative inflows.
The media projected that in August, XRP spot ETF net assets would remain between $900 million and $1.1 billion, and fund flows would range from a net outflow of $10 million to a net inflow of $40 million. If XRP recovers to $1.09 and then breaks through $1.20-$1.25, net assets could increase to approximately $1.3 billion solely due to price appreciation, even without new funds. Conversely, if the $1.04 support level breaks and the price falls below $1, it could drop to $0.90-$0.95, and ETF net assets could also decrease to approximately $830 million. The media identified the Senate's handling of the Clarity Act, a US cryptocurrency market structure bill, and whether August's monthly net inflows can reverse the recent decline as key variables.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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