Ripple (XRP) Spot ETF, where $500 million evaporated, why did only 2 funds survive?

▲ XRP (XRP, ETF/ChatGPT generated image) ©

In the XRP (Ripple) spot ETF market listed on the U.S. stock exchange, an extreme polarization phenomenon is emerging, with fund inflows concentrated in only two asset management firms.

According to investment media Trading News on August 7 (local time), the U.S. 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 composed of $2.89 million into Bitwise's product and $561,560 into Franklin Templeton's XRPZ, while the remaining five products recorded $0 in inflows.

Currently, the cumulative net inflow into XRP spot ETFs stands at $1.51 billion, but due to the impact of price declines, the total net asset value has shrunk to $993.38 million. Approximately $520 million in investment capital has evaporated due to the decrease in asset value. This directly reflects the impact of the XRP token price falling 43% year-to-date and plummeting about 70% from its peak to 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 managers—Bitwise, Canary Capital, and Franklin Templeton—hold $818 million in assets, monopolizing 82% of the total assets. Unlike the initial phase where funds flowed evenly into various asset management firms, the current situation reveals a structural vulnerability where the net inflow and outflow of the entire ETF market are determined by the investment decisions of just two channels.

The pace of monthly fund inflows has also sharply declined. The monthly net inflow, which peaked 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 the hundreds of millions of dollars flowing into Bitcoin spot ETFs and Ethereum spot ETFs, the current XRP ETF market is evaluated as having dwindled into a few products highly dependent on limited institutional demand.

Experts point to the postponement of the vote on the U.S. 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, large institutional fund inflows are inevitably restricted. Currently, XRP spot ETFs are showing an unusual buying trend, maintaining steady inflows each month despite the decline in asset value, but a legislative boost and a significant expansion of fund inflows are urgently needed to drive a market rebound.

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