XRP ETFs Defy Bitcoin's Decline with Unwavering Demand
XRP has developed an unusual advantage over Bitcoin in recent times. While U.S. spot Bitcoin ETFs have been experiencing withdrawals, XRP funds have continued to attract new investments.
In a stark contrast, on September 10th, Bitcoin funds lost roughly $282.6 million, marking their third consecutive day of withdrawals. Meanwhile, XRP funds added another $5.1 million to their inflows, extending their streak.
This trend is part of a larger phenomenon where XRP ETFs have been recording significant inflows throughout 2023. In late August, they attracted $110.49 million, lifting cumulative net inflows to approximately $1.66 billion.
The current estimates suggest that the seven U.S. spot XRP ETFs collectively hold around 1.1 billion XRP, representing about 1.13% of the token's total supply. This creates an increasingly important supply story, as more tokens are being held in institutional investment vehicles rather than circulating freely on exchanges.
The strong demand from ETFs has not yet translated into a corresponding price move for XRP. Despite the increased institutional buying, XRP's price remains stagnant around $1.35-$1.40, with $1.40 serving as an immediate battleground.