Inflows into U.S. spot XRP exchange-traded funds have slowed to a trickle, raising questions about the durability of institutional demand for the cryptocurrency. On July 10, seven XRP ETF products recorded a combined net inflow of just $107,000, a dramatic drop from the monthly inflows of over $100 million seen just two months earlier. Total assets under management for XRP ETFs have fallen to about $996 million, slipping back below the $1 billion threshold.
A sharp reversal in fund flows
The decline in XRP ETF inflows has been swift. Through May 2026, monthly inflows consistently exceeded $100 million, signaling steady institutional appetite. But in July, the trend reversed sharply. Some trading days saw zero net inflows, and on July 8, a net outflow of $7.29 million marked the largest single-day withdrawal since March. Notably, the outflows have been concentrated in specific funds rather than across the board, suggesting individual redemption pressures rather than a broad institutional retreat. The full July data will be key to determining whether this is a temporary blip or a structural shift.
Can the Ripple ecosystem reignite demand?
Despite the ETF slowdown, Ripple's network fundamentals remain solid. The RLUSD stablecoin has generated about $2.5 billion in transaction volume on the XRP Ledger, and roughly $4 billion in real-world asset tokenization is already live. Recent upgrades include native lending functionality and an Ethereum-compatible sidechain. If these features translate into increased on-chain activity—such as more users and wallets—analysts believe XRP ETF demand could recover. Conversely, a lack of tangible usage metrics may keep XRP range-bound, supported mainly by large holders.
Price outlook: erosion rather than collapse
The primary downside risk for XRP is not a sudden crash but a prolonged period of weakness. The token has held above the $1 level, but sustained ETF outflows could erode institutional confidence and gradually weaken support. However, if Bitcoin ETF inflows expand and risk appetite returns, XRP ETFs could benefit from a broader capital rotation. July's data serves as a clear warning, but XRP ETFs have absorbed roughly $1.5 billion since launch, demonstrating institutional patience. The remaining weeks of July will be a critical test of whether that trust holds or begins to crack.