XRP ETF Inflows Mask Worrying Trend in Institutional Interest

Ripple (XRP) ETFs have been experiencing a recurring trend of minor inflows, but the actual numbers tell a different story. Despite ending last week in the green, the funds saw only one day of significant action, with $2.25 million entering the fund on Thursday. This is a stark contrast to previous weeks, where exchange-traded funds tracking XRP were raking in over $20 million weekly and even reached as high as $60 million in mid-May.

The lack of interest in XRP ETFs has been attributed to the native token's struggles to hold its value. Despite numerous large US institutions, such as Morgan Stanley, revealing significant exposure to XRP through ETFs, the asset has consistently traded lower over the past few weeks. The recent rejection at $1.10 and loss of support at $1.05 have led to prices dipping below $1.00 on multiple occasions.

On-chain metrics show a contradictory landscape, with some indicators suggesting increased network activity while others point to deteriorating investor sentiment. The XRP Open Interest has reached its highest levels since the notorious October 2025 crash, which could result in intense volatility over the next few sessions.