Ripple (XRP) Spot ETF with $500 Million Evaporated, Why Did Only Two Funds Survive?

▲ XRP, ETF/ChatGPT generated image ©

In the spot XRP (Ripple) ETF market listed on the US stock exchange, an extreme polarization phenomenon is emerging, with fund inflows concentrated into just two asset management companies.

According to TradingNews, an investment media outlet, on August 7 (local time), the US spot XRP ETF market recorded a net inflow of $3.45 million on August 6, reversing the previous day's outflow in just one day. However, this inflow was entirely concentrated in Bitwise products with $2.89 million and Franklin Templeton's XRPZ with $561,560, while the remaining five products recorded $0 in inflows.

Currently, the cumulative net inflow into XRP spot ETFs amounts to $1.51 billion, but due to the impact of price drops, the total net asset value has decreased to $993.38 million. Approximately $520 million in investment funds have evaporated due to the decline in asset value. This directly reflects the XRP token price dropping by 43% since the beginning of the year and plummeting by about 70% from its peak, settling at around $1.03, recording its lowest closing price in 2026.

The concentration of funds within the market is also severe. Among the total of seven products, the top three asset management companies—Bitwise, Canary Capital, and Franklin Templeton—hold assets totaling $818 million, monopolizing 82% of the total assets. Unlike the initial phase where funds flowed evenly into various asset management companies, the current situation reveals a structural vulnerability where the net inflow and outflow of the entire ETF market are determined by investment decisions from just two channels.

The pace of monthly fund inflows has also sharply declined. The monthly net inflow, which recorded its highest this year at $131.94 million in May, decreased to $59.46 million in June and $27.29 million in July, a sharp drop of 79% compared to May. Compared to hundreds of millions of dollars flowing into Bitcoin spot ETFs and Ethereum spot ETFs, the current XRP ETF market is evaluated as having devolved into a few products highly dependent on limited institutional demand.

Experts cite the postponement of the vote on the US cryptocurrency market structure bill, the CLARITY Act, until after September, as a major reason. Without securing clear legal status through the passage of the bill, fund inflows from large institutions are bound to be limited. While XRP spot ETFs currently show an unusual buying trend, maintaining a steady monthly inflow despite declining asset values, a legislative boon and a significant expansion of fund inflows are urgently needed to lead a market rebound.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*