XRP ETFs snap two-month inflow streak as Bitcoin, Ethereum surge
In brief
- XRP ETFs posted $7.18M in outflows, breaking a two-month inflow streak
- Bitwise XRP ETF declined $7.29M with heaviest selling on July 8
- Bitcoin and Ethereum ETFs attracted institutional buyers amid market reversal
- XRP fund assets near $1B at $996.65M
- Cumulative net inflows since launch remain at $1.48B
Bitwise XRP ETF Drives the Decline
Investors withdrew $7.29 million from the Bitwise XRP ETF, with most of the selling occurring on Wednesday, July 8. Canary, Franklin, and Grayscale XRP funds recorded zero net capital movement during the week, while the 21Shares TOXR fund posted a modest $107,400 inflow — insufficient to offset Bitwise's losses.
The entire decline resulted from investors closing positions in one specific fund. This concentration underscores how tightly XRP ETF flows depend on a handful of products. Notably, the outflow doesn't reflect broad-based institutional skepticism about XRP itself, but rather a tactical reallocation across the crypto asset class.
Institutional Capital Rotates to BTC and ETH
The week's outflows coincided with a full trend reversal in the broader cryptocurrency ETF market, with institutional investors actively buying discounted BTC and ETH. Bitcoin and Ethereum funds attracted significantly more capital than XRP products during this period, suggesting that institutions prioritized larger-cap positions when volatility created buying opportunities.
This rotation is typical behavior during market dislocations — capital chases the most liquid, most established assets first.
Assets Hold Near $1 Billion
Despite the weekly outflow, the total net assets held by all seven approved US XRP funds remain near $1 billion at $996.65 million. Cumulative net inflows to US XRP funds since their launch remain stable at $1.48 billion, indicating that the one-week outflow represents a minor blip within a longer-term inflow trend.
XRP price found temporary balance within the $1.10–$1.11 range despite the weekly outflow, suggesting that price action decoupled from the ETF flow data. The resilience in price may reflect the relatively small size of the outflow relative to total XRP market capitalization and trading volume.
