XRP ETF Assets Hit $1.7B As Fresh Inflows Weaken

On October 6, the five XRP ETFs tracked by major databases held nearly 1.7 billion dollars in assets. However, their net inflows were only around 4 million dollars over one week, a sign of slowing demand.

XRP ETFs maintain significant assets under management

The sum of 1.7 billion dollars represents the total value of assets already accumulated by these funds. It does not correspond to the capital invested over the last week. Such a distinction prevents interpreting a high asset base as a recent acceleration in acquisitions.

On October 6, the five tracked products held nearly 1.13 billion XRP, according to available estimates. However, some quantities are calculated from the asset values, as not all issuers immediately publish their exact number of tokens.

Recent statistics reveal a more mixed market :

• Net inflows were about 3.9 million dollars over seven days ;
• They amounted to 4.74 million dollars between September 28 and October 2 ;
• The previous week attracted nearly 75.6 million dollars ;
• Weekly flows therefore declined by about 94% ;
• Assets under management represented nearly 1.7 billion dollars on October 6.

Data vary slightly according to tracking tables. Five funds are listed by some, while others add a sixth ETF as well as the diversified index fund BITW. Including these products, holdings may be around 1.78 billion dollars and 1.19 billion XRP.

Bitwise offsets withdrawals from Franklin and Canary

On October 6, inflows remained positive, however they relied exclusively on a single fund. During the session, Bitwise’s ETF received nearly 10.55 million dollars.

This influx offset outflows recorded elsewhere. Franklin Templeton’s fund lost about 4.07 million dollars, while Canary’s fund underwent nearly 3.3 million dollars in withdrawals. Grayscale and 21Shares recorded no significant flows.

In the end, the five products closed the session with nearly 3.14 million dollars in net inflows. Such a positive result thus masks opposing decisions among investors.

A withdrawal from an ETF does not allow identifying the sellers. Shares first trade on the exchange between investors. Only creations or redemptions of blocks by authorized participants automatically change the assets held by the fund.

The drop in Canary’s shares, from nearly 23.35 million to 23.14 million between October 5 and 6, however, confirms net redemptions on this product.

Withdrawals from exchanges do not prove a shortage

Wallets attributed to exchanges held nearly 21.98 billion XRP on October 7. This total covers 699 addresses linked to 24 exchange platforms, but also includes cold wallets and some reserves used to guarantee wrapped tokens.

Over a week, these holdings dropped by 26.5 million XRP, only 0.13%. Wallets related to Binance lost nearly 33 million tokens, while Upbit’s increased by 11.5 million.

This monthly drop seemed much more significant, with 1.63 billion XRP withdrawn from tracked addresses. However, most resulted from a technical migration of Uphold’s wallets to new addresses absent from the database used.

Without Uphold, the monthly decrease falls to nearly 75 million XRP, or 0.54%. However, this figure does not prove that clients moved their tokens to personal custody. An exchange can simply move its own reserves between wallets.

The hypothesis of an automatic XRP shortage on exchanges therefore remains insufficiently supported. On-chain movements must be linked to their destination before being interpreted as a lasting reduction in available supply.

Derivatives still dominate the XRP market

XRP trades around 1.40 dollars, down more than 3% during the session. Moreover, the limited ETF progress did not prevent the token from following the general crypto market decline.

Futures generated nearly 3.97 billion dollars in transactions over 24 hours on October 7, compared to about 802 million dollars on spot markets. Thus, derivative volume was almost five times higher.

This dominance does not immediately mean speculators are betting on a decline, since each contract has a buyer and a seller. Price, funding rates, liquidations, and open interest trends must be examined simultaneously to identify the dominant camp.

Upcoming flows will determine if the weekly weakness marks a pause or a trend change. A recovery spread across several ETFs would be a stronger signal than a rally dependent on the single Bitwise fund.