XRP Drop Wipes $37M From ETF Assets

On October 2, American XRP ETFs recorded net outflows of 3.28 million dollars, exclusively concentrated on the Bitwise fund. However, their assets experienced a decline of 37 million dollars during the session, a gap notably triggered by the drop in the price of Ripple’s cryptocurrency.

ETFs lose $37M, but only $3.28M goes out

The cumulative net assets of XRP ETFs went from $1.695 billion on October 1 to $1.658 billion the next day. This 37 million decrease does not mean investors withdrew an equivalent amount.

Actual redemptions are limited to 3.28 million dollars. The difference, close to 33.7 million dollars, mainly comes from the depreciation of XRP held by the funds. The key figures allow us to distinguish these two phenomena :

• 3.28 million dollars actually left the ETFs ;
• The Bitwise XRP fund concentrates all withdrawals ;
• The other listed products recorded no net flow ;
• Combined assets fell to $1.658 billion ;
• Historic net inflows remain close to $1.79 billion.

A net outflow corresponds to investors reselling their shares, possibly forcing the manager to reduce reserves. Conversely, a decrease in assets can simply reflect the XRP variation, without any holder leaving the fund.

The XRP drop explains most of the decline

XRP rose up to about $1.55 on October 2 before falling to around $1.44 at the end of the US session. It then traded around $1.49, representing a daily drop of more than 3%.

This correction automatically reduces the net asset value of XRP ETFs. These products hold tokens to mirror their price: when XRP loses value, their assets under management decrease even if investors keep all their shares.

The movement is also part of a broader market pullback. Bitcoin dropped from around $87,220 to below $85,000, dragging several altcoins along with it. The contraction of XRP fund assets therefore does not necessarily reflect distrust unique to Ripple.

The gap between $1.79 billion in cumulative inflows and current assets of $1.658 billion reaches about $133 million. However, this amount does not represent a realized loss for all investors. It notably reflects the variation in token value, while the individual result depends on the price at which each holder bought or sold their shares.

Bitwise alone concentrates ETF outflows

The Bitwise fund recorded all $3.28 million of outflows observed on October 2. Yet it remains the leading product in the category in terms of collection, with about $677 million in cumulative net inflows.

Franklin Templeton follows with nearly $505 million, ahead of the Canary Capital fund, which totals about $490 million. None of these competing products showed net movement during the session.

This is not the first time Bitwise has concentrated a negative day. On September 2, XRP ETFs had $7.2 million in outflows, already entirely attributable to its fund. Its size and liquidity can make it the preferred vehicle for investors wishing to quickly adjust their exposure.

One day alone is therefore not enough to identify a lasting trend. The concentration of outflows on a specific product offers a different perspective than a movement that would have simultaneously affected all managers.

ETFs maintain a largely positive collection

Outflows come after a favorable period. Between September 22 and 25, XRP funds attracted about $75.6 million. Their net collection over the entire month reached 121.4 million.

October had also started with $4.07 million in inflows before the reversal the next day. The $3.28 million withdrawn therefore do not erase either this first positive session or the amounts accumulated since the launch of the products.

XRP ETFs now represent about 1.79% of the token’s total capitalization. However, their $1.658 billion in assets remain lower than the $1.91 billion held by Solana ETFs.

The next sessions will determine if Bitwise’s withdrawal remains isolated. It will be especially important to observe both net flows and the XRP price: without this distinction, another drop in assets could be mistakenly interpreted as a wave of investor sales.