XRP ETF Inflows Defy Price Slump as Institutional Demand Reaches New Heights

The U.S. spot XRP ETFs have been attracting significant institutional demand, with $170 million in fresh cash pouring in over eleven consecutive trading sessions. This streak has added to the growing interest in these funds, which now hold a cumulative net inflow of about $1.68 billion since their launch last November.

Goldman Sachs emerged as the largest disclosed institutional name in the space, with holdings valued at approximately $87.4 million as of the second quarter. However, it's essential to note that these positions might not necessarily represent a directional investment in XRP, but rather market-making or basis trading activities.

The inflow pattern is notable despite XRP's price slipping from its late-summer highs. The token traded around $1.33 at the time of reporting, down from roughly $1.45 on Aug. 27. This divergence between price action and fund demand suggests investors may be treating dips as entry points rather than exit signals.

Regulatory filings reveal that investment advisers accounted for about $120 million of the $183 million total disclosed across filings, making them the largest category of reported holders. Hedge funds held roughly $25 million, brokerages about $17 million, and banks around $14 million.