US XRP ETFs Plummet as Inflows Dwindle Amid Regulatory Uncertainty
US XRP ETFs experienced a sharp decline in investments after launching in November last year.
The funds, which offer exposure to spot XRP, saw weekly inflows drop from over $200 million to nearly zero by July, representing a staggering 99% decrease.
This downturn has resulted in the funds holding around $997 million in assets with an unrealized loss of approximately $493 million.
The majority of these losses are concentrated in three major funds.
Despite this, institutional interest remains limited, with 84% of holdings based on retail investment and Goldman Sachs's reported position possibly reflecting client facilitation rather than conviction.
The passage of the pending CLARITY Act Senate vote is crucial for the recovery of inflows, as it could provide legal clarity and unlock institutional demand.