This October 2, US XRP ETFs recorded $3.28 million in net outflows, exclusively focused on the Bitwise fund. However, their assets suffered a decline of $37 million during the session, a gap notably triggered by the fall in the price of Ripple’s crypto.
In brief
- XRP ETFs saw $3.28 million in net outflows on October 2.
- Bitwise alone concentrates all of the withdrawals observed during the session.
- Cumulative assets of XRP ETFs fell by $37 million in one day.
- The gap is mainly explained by the drop in the price of XRP, and not by massive sales.
- Despite this negative session, the cumulative collection of XRP ETFs remains largely positive.
ETFs lose $37M, but only $3.28M leaves
Cumulative net assets of XRP ETFs increased from $1.695 billion on 1er October to $1.658 billion the next day. This decrease of 37 million does not mean that investors withdrew an equivalent amount.
Actual redemptions are limited to $3.28 million. The difference, close to $33.7 million, essentially comes from the depreciation of the XRP held by the funds. THE main figures allow us to distinguish these two phenomena:
- $3.28 million actually came out of ETFs;
- Bitwise’s XRP fund concentrates all withdrawals;
- The other listed products recorded no net flow;
- Cumulative assets fell to $1.658 billion;
- Historical net inflows remain close to 1.79 billion.
A net exit corresponds to investors selling their shares, possibly forcing the manager to reduce its reserves. Conversely, a decline in assets may simply reflect the change in XRP, without any holders leaving the fund.
The drop in XRP explains most of the decline
XRP rose to around $1.55 on October 2 before falling towards $1.44 at the end of the US session. It then traded around $1.49, a daily decline of more than 3%.
This correction automatically reduces the net asset value of XRP ETFs. These products hold tokens in order to reproduce their price: when XRP loses value, their assets under management decrease, even if investors keep all their shares.
The movement is also part of a broader decline in the market. Bitcoin fell from around $87,220 to below $85,000, dragging several altcoins with it. The contraction of XRP fund assets therefore does not necessarily reflect distrust specific to Ripple.
The gap between the $1.79 billion in cumulative inflows and the $1.658 billion in current assets is around $133 million. However, this amount does not constitute a loss realized by all investors. It notably reflects the variation in the value of the tokens, while the individual result depends on the price at which each holder bought or sold their shares.
Bitwise alone concentrates ETF outflows
Bitwise’s fund recorded the entire $3.28 million in withdrawals observed on October 2. However, it remains the leading product in the category in terms of collections, with approximately $677 million in cumulative net inflows.
Franklin Templeton comes in behind with nearly $505 million, ahead of Canary Capital’s fund, which totals around $490 million. None of these competing products showed any clear movement during the session.
This is not the first time that Bitwise has had a negative day. As of September 2, the XRP ETF had suffered $7.2 million in outflows, already entirely attributable to its fund. Its size and liquidity can make it the preferred vehicle for investors wishing to quickly adjust their exposure.
A single day is therefore not enough to identify a lasting trend. The concentration of withdrawals on a specific product offers a different reading of a movement which would have affected all managers simultaneously.
ETFs maintain largely positive inflows
Exits take place after a favorable period. Between September 22 and 25, XRP funds had attracted approximately $75.6 million. Their net collection for the whole month had reached 121.4 million.
The month of October also began with $4.07 million in entries, before the turnaround the next day. The 3.28 million withdrawn therefore do not erase this first positive session nor the amounts accumulated since the launch of the products.
XRP ETFs now represent approximately 1.79% of the token’s total capitalization. Their $1.658 billion in assets, however, remains lower than the $1.91 billion held by the Solana ETFs.
The next sessions will determine whether the Bitwise withdrawal remains isolated. Above all, it will be necessary to observe the net flows and the price of XRP jointly: without this distinction, a further drop in assets could be wrongly interpreted as a wave of sales by investors.
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