US spot XRP ETFs exploded onto the market in November, gathering a swift $667 million in their first month. This was the fastest crypto product growth since Ethereum funds, hitting $1 billion faster than expected amid a rare eight-week inflow streak, remarkable even as Bitcoin ETFs saw outflows. Investors flocked in, pushing weekly inflows above $200 million at the peak.
But that momentum dissolved rapidly. By mid-July, inflows had dwindled by around 99%, with weekly flows shrinking to just a few million dollars. July 13 marked a turning point: daily flows hit zero, ending the inflow streak that had kept the product alive. The rest of July saw days without any inflows and a $7.29 million outflow the largest since March signaling investor retreat.
The lingering effects are telling. Cumulative inflows of $1.49 billion now contrast sharply with net assets of just $997 million, pointing to an unrealized loss of approximately $493 million. Concentration is high, with 82% of assets held within just three funds, and several other products stagnant. The sole notable institutional position is Goldman Sachs’ $153.8 million spread across four funds, revealed in a December 13F filing. Analysts interpret this as trading desk activity, given the market is still roughly 84% retail-held.
Flows have since stabilized near zero, a level some investors view as a possible floor. Yet, all hopes for a turnaround are tied to an external event: the Senate’s upcoming vote on the CLARITY Act, which is currently seen as a 50/50 proposition. The product itself no longer drives the narrative.
The story of XRP ETFs has shifted. What began as a rapid surge, fueled by eager buyers and institutional hype, ended abruptly as demand evaporated. No rotations or pauses, just a clear stop in inflows. $1.49 billion invested now struggles to stay afloat with less than $1 billion in assets, leaving a market pegged to political outcomes rather than fund performance.
