XRP ETFs See Record Inflows as Investor Demand Surges
The XRP ETFs fared far better than the BTC and ETH ETFs, which saw inflows. Among the many cryptocurrency exchange-traded funds that follow different assets—including Ripple’s native token—the market sentiment has changed dramatically. The spot XRP ETFs had a good run overall, but they struggled for a long time due to low demand, especially in August. Last week, though, things became much better.
Similarly unimpressive performance from the funds started Monday, with SoSoValue showing a total of $0.00 in actual flows. Since the start of the month, when seven of the eleven trading days saw no transactions, this extended period of lethargy has continued. On August 18, however, investors put $5.81 million back into the funds, re-entering the market. For the month, this was the highest daily net inflow that had ever been recorded. Weirdly, on Wednesday—a crucial day in the cryptocurrency markets—the ETFs had a gain of $2.35 million.
Both Trump’s hosting of a Crypto Summit at the White House and the announcement of a major monetary pivot by the US Treasury Department were widely believed to be the main causes of the price recovery. The next paragraph will go into more detail, but maybe that explains why XRP was a little late compared to its competitors. Thursday saw a surge in inflows to $13.24 million, and Friday was the most significant day since May 14 with a total of $18.38 million. A total of $39.78 million was added to the ETFs last week, the largest weekly increase since May 15th. At $1.55 billion, the overall net inflows hit a new high, firmly establishing Bitwise’s XRP fund as the biggest of its kind.
There are three XRP tokens in its holdings: XRPC ($468.12 million), XRPZ ($434.16 million) from Franklin, and XRPC ($542.69 million) from Canary Capital. On Wednesday, XRP’s growth was more muted compared to Bitcoin and other cryptocurrencies, but once it started to increase, it far above predictions. By Saturday morning, the asset had surged to $1.70 after successfully defending the $1.00 support. This meant that in less than a day, its value had increased by 70%.
