XRP ETF Inflows Slow, Price Slips Below $1.10

XRP's price has slipped below $1.10 after institutional inflows into spot XRP exchange-traded funds (ETFs) slowed significantly in July, raising questions about sustained institutional interest after months of steady buying [1]. The slowdown follows a period where consistent ETF inflows were seen as a key support for XRP's price, even as the token trended lower [1].

ETF Inflows Decline

Spot XRP ETFs, which launched in late 2025, initially saw strong demand, attracting over $666 million in November and nearly $500 million in December [1]. After a dip in Q1, inflows rebounded in Q2, with $82 million in April, $132 million in May, and $59 million in June [1]. However, July has seen a sharp decline, with only $4.68 million in inflows so far, a fraction of previous months [1]. Two of the last three trading days in July recorded no new money entering the funds, and total assets under management have decreased from $1.05 billion to $1.02 billion [1]. This marks a significant shift from the consistent buying that supported XRP's price for the first half of the year [1].

The slowdown in ETF activity is attributed to a broader bearish trend in the crypto market, which has seen a 2% overall market decline on the day, and a pullback in investor sentiment [1]. While Bitcoin ETFs have also experienced billions in outflows during this period, the primary driver for XRP ETF's reduced inflows appears to be a decrease in retail investor participation [1]. Bloomberg Intelligence data indicates that approximately 84% of the money in XRP ETFs originates from retail investors, who tend to buy when prices are rising and pull back during dips [1]. The recent dip below $1.10 for XRP may have triggered this retail withdrawal [1]. Additionally, the delay in the CLARITY Act's passage, which missed its July 4 White House deadline, has removed an immediate catalyst for new institutional buying, pushing the next potential window to early August [1].

Continued Large-Holder Accumulation

Despite the slowdown in new ETF money, existing funds have not seen significant outflows, with only small amounts leaving on weaker days [1]. This suggests that current holders are not selling, but rather new money has stopped arriving [1]. Furthermore, large XRP holders, specifically wallets holding between 100 million and 1 billion XRP, have been accumulating the token as its price fell, with the largest among them acquiring approximately $200 million worth [1]. New XRP Ledger wallets also reached a three-month high in early July, with nearly 5,000 created in a single day, indicating new buyers entering the market at lower prices [1]. The amount of XRP held on Binance has fallen to a two-year low, down about 20% since late 2024, which typically signals tokens being moved to private storage for long-term holding rather than preparation for sale [1]. Bitwise's XRP ETF, the largest in the market, has also surpassed $500 million in total inflows, a milestone that suggests continued underlying conviction [1].

What to watch

• Monitor XRP's price action relative to the $1.10 level, as a sustained break above could signal renewed interest [1].
• Watch for the passage of the CLARITY Act in early August, which could act as a catalyst for fresh inflows [1].
• Observe institutional ETF inflow data for any signs of a rebound, particularly from larger, long-term investors [1].

The current test for XRP's price support comes as the steady flow of new money into its ETFs has nearly halted, primarily due to a pullback in retail buying and regulatory delays [1]. While new inflows have diminished, the underlying conviction from large holders appears to remain, with continued accumulation and tokens moving off exchanges for long-term storage [1].