Ripple ETFs (XRP) Resume Their Inflow Streak, But There’s an Elephant in the Room

Thursday was the best day for funds since the end of June. However, one thing needs to be addressed.

Spot exchange-traded funds that track the performance of Ripple’s cross-border token suffered their first hit last week in more than two months, but net inflows have returned.

However, there is still a clear exodus of investments that we need to discuss, as financial vehicles have not had data to report for too many days.

XRP ETFs are back

For about two months, during which Bitcoin and Ethereum spot ETFs bled heavily, with billions of dollars leaving both, XRP counterparts attracted investors’ attention by raising new capital. In fact, as we’ve reported multiple times, they established a 9-week exclusively green streak, during which they attracted nearly $200 million.

That all changed in the second week of July when SoSoValue data showed that investors withdrew just over $7 million from funds for the first time in over two months.

However, green is back on the XRP street, as last week almost made up for all the losses from the previous one. Net inflows for the five-day trading period stood at $6.78 million. This means that the cumulative total net inflow has returned to its ATH levels of almost $1.5 billion.

Bitwise’s XRP ETF continues to widen the gap between it and the first such fund to hit Wall Street – Canary Capital’s XRPC. The former now has almost $500 million in assets under management, while the latter is less than $470 million.

The big catch

Although the week as a whole was indeed in the green, the $6.78 million in net inflows were recorded on a single day: July 16. The remaining four trading days saw no action to report, according to SoSoValue. Although XRP ETFs have seen many such days in the past, there have never been four in the same week.

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Additionally, seven of the last 10 business days have seen net flows of $0.00. This is a rather worrying trend, which clearly shows that interest and demand for financial products has decreased significantly.

Part of the blame can perhaps be placed on the overall sluggish summer season, during which trading volumes traditionally decline as investors wait for better times. The sluggish price of XRP could also discourage investors, as the asset has failed to move above the $1.10 resistance despite a few attempts. It remains down 3% per month, with a market capitalization well below $70 billion.