XRP’s Institutional Build-Out Accelerates as Price Action Remains Stuck in Neutral

Record ETF inflows and tokenized fund launches contrast with XRP's 42% price drop, highlighting a growing divide between institutional and retail investors.

The gap between XRP’s expanding institutional infrastructure and its languishing price has rarely been wider. Even as the token trades near 52-week lows and technical indicators flash bearish, a steady stream of product launches, ETF inflows, and corporate adoption is reshaping the asset’s foundation beneath the surface.

Record ETF Inflows Mask a Fractured Market

Cumulative net inflows into US spot XRP ETFs hit a fresh all-time high of $1.5 billion on Monday, according to the latest data. The Bitwise XRP ETF alone now manages roughly $500 million in assets, while the broader suite of seven funds — including offerings from Canary and Franklin Templeton — oversees a combined $683.66 million. Yet this institutional demand has done little to arrest the token’s slide: XRP has shed more than 42% since the start of the year and sits roughly 21% below its 200-day moving average of $1.37.

The divergence reflects a deepening split in the investor base. Large wallets have added 2.8% to their XRP holdings over the past five weeks, while retail investors offloaded 5.2% over the same period. New regulatory filings reveal the breadth of institutional participation: Gerber, an asset manager with $592 million under management, disclosed 12,958 shares in the Franklin XRP ETF on Wednesday, while Vista Finance holds roughly $11.45 million in the same product. Smaller firms including Gallacher Capital and CPR Investment have also increased their ETF positions.

The most striking institutional bet comes from Intesa Sanpaolo, Italy’s largest bank, which more than doubled its crypto exposure in the first quarter from roughly $100 million to about $235 million. The bank built a new position of 712,319 shares in the Grayscale XRP Trust — initially worth around $18 million and now valued at approximately $26 million after the trust’s price appreciation. Ripple had already pledged custody services to the bank in April.

Aviva Brings Tokenized Fund to XRP Ledger as Hong Kong Opens Retail Access

The institutional push extended beyond ETFs on Wednesday when Aviva Investors launched a tokenized share class of its US Dollar Liquidity Fund on the XRP Ledger. The product, approved by the Central Bank of Ireland, was developed in collaboration with Ripple. BNY Mellon handles custody of the underlying assets, Komainu provides digital custody, and Licuido manages the tokenization process. Eligible investors with digital wallets receive the same investor protections as a conventional fund, with the vehicle targeting low-risk daily returns from short-term dollar-denominated bonds.

Aviva CEO Mark Versey described tokenization as an efficiency driver for the fund management industry. The total value of real-world assets recorded on the XRP Ledger has reached roughly $4.37 billion, with the number of holders of such tokenized assets rising 17% in a single month.

Separately, OSL Digital Securities launched the first licensed retail trading of XRP in Hong Kong, adding the token to a list that already includes Bitcoin, Ethereum, and Solana. The exchange offers XRP/USD and XRP/HKD trading pairs and carries $1 billion in custody insurance. Ripple President Monica Long said institutional demand for both XRP and the company’s stablecoin RLUSD is at record levels. Analyst Lark Davis attributed the lack of a price breakout to the typical lag in institutional onboarding processes, including board approvals and compliance checks for new investors.

Senate Pause and Insider Sale Weigh on Sentiment

The positive news flow collided with a significant political setback this week. The US Senate postponed a vote on the CLARITY Act — legislation that would clarify whether XRP and similar digital assets fall under SEC or CFTC jurisdiction — pushing the decision to September. Seven Democratic senators, including Cortez Masto and Warner, oppose the bill over insufficient ethics rules. Goldman Sachs CEO David Solomon publicly endorsed the legislation in a Politico interview, while banking associations have warned about proposed stablecoin regulations. In response to the delay, the SEC and CFTC are exploring administrative alternatives under a project called “Project Crypto.”

The postponement sent XRP down roughly 5% on Wednesday to $1.06. The token has since recovered to trade near $1.08, up 1.51% on the day, but remains just 7% above the 52-week low of $1.01 hit on June 26. That level has so far held as support.

Adding to the cautious tone, Grayscale CEO Peter Mintzberg sold 2,611 shares of the Grayscale XRP Trust ETF for roughly $53,400 — his first sale since acquiring the position in late 2024. He still holds approximately 2.84 million shares, but the transaction comes as inflows into the seven US spot XRP ETFs have recently slowed.

Technical Picture Remains Fragile

XRP’s chart offers little comfort for bulls. The token trades below its 50-day moving average of $1.11, and the Relative Strength Index sits at 42.1 — indicating weak but not yet oversold momentum. Open interest in XRP futures on Binance has fallen to roughly $369.6 million, the lowest level since 2024, signaling fading speculative appetite in the derivatives market.

The Federal Reserve’s upcoming interest rate decision looms as the next near-term catalyst. Most market participants expect a rate hold, but a hawkish surprise could intensify downward pressure. Standard Chartered nonetheless maintains its year-end price target of $2.80 for XRP, suggesting the bank sees the current weakness as temporary.

For now, investors face a fractured picture: institutional capital continues to flow through ETFs, direct holdings, and new product launches, while regulatory uncertainty in Washington and a damaged technical setup keep short-term sentiment subdued. The Senate’s September vote on the CLARITY Act may ultimately determine which force prevails.