Five US spot XRP ETFs absorbed $320.8 million in net primary-market inflows during the first half even as their combined holdings sat $746.1 million below accounting cost at June 30.
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XRP ETF inflows reach $320M despite $746M paper loss
Five US spot XRP ETFs absorbed $320.8 million in net primary-market inflows during the first half even as their combined holdings sat $746.1 million below accounting cost at June 30.
Investors poured $320.8 million into five US spot XRP ETFs in H1 even as the funds' holdings sat $746.1 million below cost at June 30.
Bloomberg ETF analyst James Seyffart called the demand "surprisingly resilient" in an Aug. 31 post on X, putting cumulative net inflows across the asset class at $1.8 billion.
Bitwise, Canary Capital, Franklin Templeton, 21Shares, and Grayscale recorded $629.9 million in primary-market share creations against $309.1 million in redemptions during the first half, per SEC filings. Their combined XRP holdings carried a $1.693 billion accounting cost but a $947.3 million fair value at June 30 — a 44.1 percent shortfall. XRP traded down 0.49 percent over the past 24 hours at roughly $1.38, ranking fifth by market cap.
The five funds held roughly 906.8 million XRP at June 30, implying a cost-basis breakeven near $1.87 per token. XRP trades around $1.38, leaving the complex about 26 percent below cost at current prices. Whether the $746 million gap narrows or widens into Q3 now depends on where XRP trades next.
Why investors kept buying into an underwater position
The aggregate $320.8 million net figure reads as resilient because inflows at three funds overwhelmed outflows at the other two. Bitwise, Canary, and Franklin recorded $537.9 million in first-half creations against just $53.3 million in redemptions — a net inflow of roughly $484.5 million. Only about $9.90 left those three funds for every $100 that came in, and it happened while their combined XRP holdings traded 42.9 percent below accounting cost.
Grayscale and 21Shares recorded $92.1 million in creations against $255.8 million in redemptions, a net outflow of $163.7 million that accounted for roughly 83 percent of all redemptions across the five-fund sample. Grayscale alone saw $180.8 million redeemed against just $66.6 million created, while 21Shares recorded $75 million of redemptions against $25.5 million of creations.
Some of that apparent resilience may reflect rotation, with investors exiting higher-fee or legacy products while entering funds they consider better structured. That is a different pattern than every cohort of XRP ETF shareholders independently believing in the trade.
The $746.1 million figure measures the gap between the funds' recorded XRP cost and its June 30 fair value, a fund-level accounting figure. That sits apart from the personal cost basis of individual shareholders, who bought and sold at many different prices across the period. Creations and redemptions likewise happen between the funds and authorized participants in the primary market, a mechanism distinct from retail investors directly depositing or withdrawing cash.
REX-Osprey's XRPR sits outside this analysis entirely, since its 1940 Act structure and ability to gain XRP exposure through other funds make its balance sheet a poor match for the five grantor-trust products compared here.
How far XRP must recover to erase the accounting gap
The bull case has XRP climbing back toward the $1.50 to $1.90 range, which would erase most of the accounting gap without requiring a fresh cycle high. At $1.50, the five-fund sample's 906.8 million XRP would be worth roughly $1.36 billion — about 20 percent below cost. At $1.87, the complex reaches breakeven. At $1.90, fair value edges slightly above cost, and the resilience narrative turns into vindication.
The bear case has XRP sliding toward $0.75 to $0.90, pushing the five-fund sample 52 percent to 60 percent below cost. In that scenario, the real test shifts to whether the redemption pattern already visible at Grayscale and 21Shares starts showing up across the rest of the complex.
Cumulative XRP ETF inflows reached nearly $1.6 billion by Aug. 24 and $1.64 billion by Aug. 29, before Seyffart's $1.8 billion figure at month's end. That trajectory shows June 30 captured a moment in a longer pattern, well short of its end. Bitcoin's spot ETFs pulled in roughly $2.5 billion over seven trading days in late August before a rare single-day outflow, with BTC trading near $78,000 — but XRP's flows kept building through a far deeper drawdown, with the funds' own holdings still trading well below what they paid.
Regulated XRP demand behaved this year like conviction buying into a known loss. Whether that conviction was broadly shared or concentrated in a few funds now depends on where XRP trades next.
This article is for informational purposes only and does not constitute investment advice.
