XRP ETF Net Inflows Fall 93% to $1.01 Million

XRP News

XRP (XRP), the digital asset associated with Ripple, faced a sharp institutional-demand test after XRP ETF weekly net inflows collapsed by 93% to $1.01 million, down from $14.86 million the prior week. The drop placed the XRP fund complex among the weakest major crypto ETF categories during a period when Bitcoin products reversed $61.53 million of outflows and recorded $754 million of inflows, while Ethereum funds attracted about $195 million. Total net assets in XRP ETFs slipped from $988 million to roughly $964 million, and one session briefly showed a $3.58 million net outflow before a $3.45 million recovery. Our reading of the flow tape is that institutions are not abandoning the asset outright; they are rotating toward larger, more liquid vehicles. The fund-level weakness arrived while price action remained fragile: XRP traded near $1.03 over the last 24 hours covered by the data, but the market still absorbed $9.48 million in liquidations, about 98% of which came from long positions. Grayscale's XRP trust also weighed on sentiment after recording 103.41 million XRP, worth roughly $180.78 million, of first-half net outflows. This combination makes the altcoin rebound more dependent on whale accumulation than on fresh ETF demand in the near term.

Large XRP holders are splitting the market's narrative, because wallets controlling 10 million to 100 million XRP added 1.23 billion tokens since the start of 2026 even as the price fell 43%. On-chain data shows this cohort lifted its balance from 10.97 billion XRP in January to 12.2 billion, with the added position valued at about $1.28 billion at current levels. The accumulation was not linear: after a 2.4 billion-token expansion in November 2025, buying slowed in December and restarted gradually in March, before the group reached a fresh peak of 12.27 billion XRP on July 8. Exchange-flow signals reinforce the hold thesis. By mid-July, large-holder transfers to Binance had fallen to 25.3 million XRP, the lowest since January 2025 and far below the 583 million-token peak worth roughly $1.36 billion. The number of wallets in this bracket rose from 301 in January to 322 in early July, then eased to 313, still below the all-time high of 351. Not every whale segment is buying. Entities holding 100 million to 1 billion XRP reduced their total by about 300 million tokens to 8.13 billion, while the 1 million to 10 million group added 260 million to reach 3.83 billion. That divergence frames the current bear-market drawdown as repositioning rather than uniform exit.

A separate institutional catalyst emerged from the XRP Ledger itself, where software release 3.3.0 introduced a proposed Confidential Transfers amendment aimed at tokenized Wall Street assets. The release notes state the feature would let institutions encrypt balances and payment amounts on Multi-Purpose Tokens while keeping accounts and token types visible, using cryptographic proofs that allow the network to verify totals without exposing underlying figures. The proposal addresses a market already visible on-chain: RWA.xyz tracks about $1.38 billion of real-world assets issued on XRPL, including $845.7 million of RLUSD, $212.6 million from Ondo, $116.1 million from VERT Capital, $55.4 million from Archax and $11.6 million from Societe Generale. Excluding RLUSD, more than $530 million in tokenized assets could be relevant for privacy-conscious issuers. The amendment package also includes Batch, Sponsor, Permission Delegation and Dynamic MPT tools, with Batch supporting up to eight transactions in an all-or-nothing sequence. None of the changes are active yet; XRPL amendments need at least 80% validator support held continuously for two weeks. Version 3.3.0 also reduces node memory usage by 10% to 15%, according to XRP Ledger Operations. The first test will be whether existing issuers adopt encrypted balances rather than leaving transfers public, especially beyond simple payments and outside Automated Market Maker workflows.

COINOTAG's analysis is that these three threads form one institutional-adoption story with uneven timing. ETF flows show immediate demand weakness, while on-chain whale accumulation and the XRPL 3.3.0 release point to a longer-horizon positioning around tokenized assets. The load-bearing primary record is the XRPL amendment set: Confidential Transfers must still secure 80% validator support for two weeks, meaning near-term price support depends more on whether large holders keep absorbing supply than on unfinished protocol features. If institutional issuers activate privacy tools and exchange inflows stabilize, XRP could convert structural development into market demand; until then, the tape remains a tug-of-war between fund outflows and whale conviction.