XRP slips below $1.10 as ETF inflows slow to near zero in July

XRP fell 3.1 percent to $1.09 on July 8 as spot ETF inflows slowed to nearly zero, testing whether institutional demand can sustain the token after a leverage washout cleared over-leveraged positions.

"The buying that held XRP up for eight months has nearly stopped," Sam Daodu, crypto analyst at 24/7 Wall St., said. Spot XRP ETFs took in just $4.68 million so far in July, down from $132 million in May, according to Sosovalue data.

The funds went two of the last three trading days without any new money, and total assets under management dropped to about $1.02 billion from $1.05 billion. The slowdown comes as the CLARITY Act missed its July 4 White House deadline, pushing the next regulatory catalyst to early August.

The leverage washout reduced the risk of cascading liquidations, but the next directional move depends on whether genuine spot demand and ETF creations materialize. If ETF demand proves strong, XRP could see a rebound toward $1.30. If not, the token may remain range-bound or drift toward the $1.00 support level.

The slowdown in ETF inflows reflects a broader market pullback rather than an XRP-specific exit. Bitcoin ETFs lost billions over the same weeks, according to The Block data. Bloomberg Intelligence estimates that roughly 84 percent of the money in XRP ETFs comes from retail investors, who tend to pull back when prices fall.

Big holders are still accumulating. Wallets holding between 100 million and 1 billion XRP added to their positions as the price fell, with the largest cohort buying roughly $200 million worth of the token, Santiment data shows. Binance XRP holdings fell to a two-year low, down about 20 percent since late 2024, a move that typically indicates holders are moving tokens into private storage.

The XRP Ledger's tokenized assets reached $4 billion from $150 million within a year, according to Coin Bureau, positioning XRP among the top four global tokenization networks alongside Ethereum and BNB Chain. The increase appears driven by institutional adoption and amendments like MPTokensV1.

What to watch

The CLARITY Act's passage in early August remains the key regulatory catalyst that could pull fresh money into XRP ETFs. The bill missed its July 4 deadline, and the next realistic window is early August. Bitwise's XRP ETF, the largest of them all, just crossed $500 million in total inflows — a milestone the funds would not be hitting if institutions were truly heading for the exit.

This article is for informational purposes only and does not constitute investment advice.