XRP ETF: Entries accelerate without causing the price to jump

This September 25, US spot XRP ETFs saw $22.65 million in net inflows. Bitwise mainly concentrates these flows, while XRP remains near $1.55 despite this demand.

Bitwise captures more than 80% of new capital

In one session, the Bitwise XRP ETF collected $18.39 million. XRPZ, Franklin Templeton’s fund, received $4.26 million. As for other tracked XRP ETFs, they have not attracted any significant movement.

Both products therefore recorded the entirety of all daily entries. Bitwise attracted almost 81% of capital, compared to 19% for Franklin Templeton.

The main data available make it possible to measure the concentration of these flows:

• $22.65 million in net inflows across all XRP ETFs;
• $18.39 million for the Bitwise fund;
• $4.26 million for that of Franklin Templeton;
• $677 million in cumulative inflows for Bitwise;
• $501 million in cumulative admissions for Franklin Templeton.

Now, the available figures put the cumulative net inflows of all XRP ETFs at $1.79 billion. Their total assets are around $1.77 billion. However, the difference between these two amounts is justifies notably by the fluctuations of XRP since the arrival of capital.

So, Whale Insider summary the session:

Bitwise and Franklin ETF customers purchased $22.65 million worth of XRP together.

However, this formulation requires nuance. Net inflows are equivalent to new subscriptions less withdrawals. They do not show that Bitwise and Franklin Templeton decided to acquire XRP for their own treasury.

XRP ETFs chain several positive sessions

This September 25 session continues a favorable streak for Ripple’s crypto-backed products. American funds had attracted $20.02 million as of September 22. Bitwise had collected $19.16 million, almost all of it.

Admissions were around $18.04 million the next day. Bitwise therefore received $11.54 million and Franklin Templeton $6.50 million. The two managers still dominated the September 24 session with respectively 9.91 million and 4.98 million dollars.

Thus, XRP ETFs earned nearly $75.6 million over these four sessions. Bitwise accounts for about $59 million of that amount, or almost 78% of the total. Such concentration reveals that demand does not benefit all issuers uniformly.

It is explained in particular by the fees, the liquidity available on each product and their accessibility on brokerage exchanges. Bitwise had a median bid-ask spread of 0.06%. Such a level facilitates the execution of large orders.

These entries expand accessibility to XRP without requiring investors to hold the token directly. However, they do not allow buyers to be precisely identified. The expression “institutional demand” should therefore be used with caution, as ETFs can accommodate both companies and individual investors.

XRP has not yet transformed these flows into a sharp rise

This September 26, XRP is moving around $1.55. It lost almost 2% in one day, despite new subscriptions recorded by ETFs. Its capitalization had reached $97 billion, for a circulating supply of close to 62.9 billion tokens.

At the current price, the $22.65 million in entries theoretically correspond to around 14.6 million XRP. This volume remains modest compared to the approximately 3 billion dollars exchanged on the market in 24 hours. It is therefore not sufficient to trigger a lasting increase in the price.

XRP also remains 58% below its all-time high of $3.65. Continued inflows into ETFs provide support, however the next move will also depend on bitcoin, overall market liquidity and US monetary expectations.