XRP ETFs Near $1B as Senate Delays Regulatory Clarity

XRP ETFs hit $1B in inflows for eight straight weeks, yet price languishes at $1.09. On-chain data shows exchange withdrawals tripling, signaling long-term accumulation by institutional players amid regulatory delays and a bearish crypto market.

Institutional demand for XRP exposure is quietly building a wall of capital. Spot exchange-traded funds dedicated to the token have accumulated almost $1 billion in assets under management, with inflows running for eight straight weeks. The milestone comes even as XRP itself trades at $1.09, down more than 42% since the start of the year and flirting with a 52-week low of $1.01.

The divergence between fund flows and spot price is striking. On-chain data shows investors are pulling tokens off exchanges at an accelerating pace—outflows nearly tripled in late June, a pattern historically associated with long-term accumulation. The combination of ETF buying and exchange withdrawals suggests that sophisticated players are building positions while short-term price action remains weak.

Regulatory uncertainty continues to weigh on sentiment. The US Senate postponed a vote on the CLARITY Act, legislation that could classify XRP as a digital commodity. The decision now likely slips to August, removing a near-term catalyst that briefly lifted the token back in the spring when a committee passed an earlier version. In California, however, a new digital financial assets law took effect on July 1 without any enforcement action against Ripple, clearing a small overhang for its US business.

Ripple is pressing ahead regardless. On July 4 the company launched a startup accelerator in Hong Kong with Brinc, aiming to seed applications on the XRP Ledger and reduce dependence on the American market. It has also joined the Open USD stablecoin consortium, a project backed by Visa, Mastercard, and BlackRock. Market observers note architectural similarities between Open USD and the original XRP system, bolstering Ripple’s credentials as a blockchain pioneer.

The network itself is gaining traction. A single day recently saw nearly 5,000 new XRP wallets created—the strongest daily growth in three months. This uptick in user activity dovetails with the institutional accumulation trend, yet the token’s price refuses to budge.

Technically, XRP remains wedged between support at $1.00 and resistance around $1.20. A break above that level would put the 50-day moving average at $1.21 in play. For now, external macro forces are driving the bus: the broader crypto downturn has hit XRP harder than Bitcoin in recent corrections, and traders on prediction markets assign a 70% probability to a monthly close above $1.20.

The disconnect between operational progress and market valuation remains striking. Ripple is laying global infrastructure, ETFs are pulling in fresh capital, and users are flowing onto the ledger—yet the price sits near its floor. Once the macro headwinds ease, that foundation could support a meaningful recovery. Until then, XRP drifts in the shadow of the wider market.