Ripple ETFs Offer Rare Bright Spot Despite XRP’s Sharp Decline
It was a challenging week for the cryptocurrency market, with significant downturns affecting most digital assets. Ripple’s XRP, known for its robust and vocal community, was not immune to the broader market sell-off, experiencing a substantial price drop.
However, a notable silver lining emerged for XRP: its associated exchange-traded funds (ETFs) in the United States managed to finish the week with positive net inflows, a rare feat compared to most other major crypto ETFs.
While the absolute figures were modest, especially when contrasted with the initial surge of ETFs following their launch, the XRP ETFs recorded $2.62 million in net inflows for the week. This performance stands in stark contrast to Bitcoin ETFs, which saw a significant outflow of $1.7 billion.
The spot XRP ETFs experienced only one day of net withdrawals last week, on June 3, with $5.34 million leaving the funds. However, this was offset by net inflows of $4.13 million on June 1 and $3.83 million on June 4. Two other trading days showed minimal activity, with SoSoValue reporting $0.00 in net flows for both.
Consequently, the cumulative net flows for these ETFs continued to climb, reaching a new all-time high of over $1.43 billion. Bitwise’s XRP ETF has solidified its lead over Canary Capital’s XRPC ETF, holding $467 million and $458 million, respectively.
Despite the positive performance of the ETFs, the underlying XRP asset was heavily impacted by the widespread market downturn. In a week where Bitcoin plummeted from over $73,000 to $59,000, XRP fell from $1.33 to $1.05. This 21% decline marked XRP’s lowest price point since late 2024, shortly after its post-US presidential election rally began.
Although XRP briefly dipped close to the crucial $1.00 psychological level, its subsequent rebound has been subdued, and it continues to trade below $1.10. Analysts remain optimistic about XRP’s long-term prospects, but prominent figures like EGRAG CRYPTO caution that a drop below $1.00 might be imminent unless the broader market structure shows rapid improvement.
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