XRP Investors Defy Logic with $320M in ETF Buy-In Despite $746M Paper Loss

Despite sitting on a $746M paper loss at the end of June, investors kept buying into XRP ETFs. According to SEC filings, five major US spot XRP products - Bitwise, Canary Capital, Franklin Templeton, 21Shares, and Grayscale - recorded roughly $629.9M in primary-market share creations against $309.1M in redemptions during the first half of the year.

This left capital activity positive by about $320.8M, with fresh capital arriving at a handful of funds to absorb real selling elsewhere in the same product category. Some of this apparent resilience may also reflect rotation, with investors exiting higher-fee or legacy products while entering funds they consider better structured.

James Seyffart, a Bloomberg ETF analyst, described XRP ETF demand as 'surprisingly resilient' in an Aug. 31 post, where he put cumulative net inflows across the asset class at $1.8B by month's end.