XRP ETFs attract $110 million in a week as Bitcoin funds see outflows

ETF inflows diverge as spot prices stagnate

Recent data indicate a stark contrast between institutional demand for XRP and the performance of its spot market. While the price of XRP has hovered between $1.35 and $1.40, exchange data show ETFs have continued to draw new investment. On September 10, U.S. spot Bitcoin ETFs experienced $282.6 million in outflows, the third consecutive session marked by sizeable withdrawals. In the same period, XRP funds saw inflows of $5.1 million, extending a multi-session streak of positive momentum.

Coinpaper reported that XRP ETFs pulled in $19 million during a week when Bitcoin funds lost $449 million. In another round of trading, XRP ETFs added $14.38 million, while Bitcoin funds lost $236.5 million. This trend has persisted through several market sessions.

XRP ETFs continued to gain new assets even as the underlying token’s price met resistance around $1.36, while Bitcoin investment products lost hundreds of millions in the same period.

This divergence has underscored increased attention to XRP’s supply and demand dynamics within institutional products.

Institutional accumulation and supply dynamics

Current estimates show the seven U.S. spot XRP ETFs collectively hold approximately 1.1 billion XRP, or about 1.13% of the total existing token supply. The combined value of these holdings is roughly $2 billion. Continued accumulation by ETFs means a larger portion of XRP sits within institutional investment vehicles instead of circulating freely on exchanges.

Despite the surge in ETF demand, XRP’s price has not reflected a similar bullish momentum. The token has struggled to move decisively above $1.40, and ETF accumulation has not yet triggered a major spot market rally.

Experts point to several factors limiting a stronger uptrend, including ongoing profit-taking, liquidity in exchange markets, and persistent risk aversion among crypto investors.

Bitcoin faces similar headwinds, currently trading below $80,000 as investors anticipate the next Federal Reserve decision and adjust to high inflation and interest-rate expectations.

Reuters analysts emphasize that while structural institutional demand for Bitcoin is increasing, broader macroeconomic risks continue to weigh on both leading cryptocurrencies.

Mini dictionary: ETF (Exchange-Traded Fund), an investment vehicle that tracks the price of an underlying asset or basket of assets and is traded on stock exchanges. In the context of cryptocurrencies, ETFs offer investors regulated exposure to digital assets without requiring direct token ownership.

Technical levels and market outlook

The $1.40 mark has emerged as an important technical level for XRP. A sustained move above this price would signal strengthening spot-market demand and suggest that institutional accumulation is impacting the broader market.

If this resistance becomes support, market participants may set their sights on higher targets, such as $1.60 and later $2. However, should XRP drop below $1.30 despite ongoing ETF inflows, it would indicate that institutional accumulation is not sufficient to offset continued selling pressure.

A broader improvement in cryptocurrency sentiment may be required for XRP to break out of its current range. Market participants are also monitoring the CLARITY Act vote, which may add further volatility. Recent trading has seen XRP maintain its stance near $1.40 ahead of the Senate’s procedural assessment.

Institutional demand for XRP has remained strong through ETF products, even as price action stalls and the macro environment adds uncertainty.