XRP's Institutional Pipeline Widens as ETF Flows Hit Multi-Month Highs

XRP ETFs see $23.87M daily inflows, August total doubles July. On-chain activity jumps 650% after Gemini integration. Price up 34% monthly.

The capital flowing into XRP-linked exchange-traded funds is telling a story that daily price charts simply cannot capture. While the token itself has settled into a consolidation phase after a blistering two-week advance, the institutional bid underneath has quietly accelerated to levels not seen in months.

US spot ETFs tracking XRP absorbed a combined $23.87 million in net inflows on Tuesday, led by Bitwise with $11.02 million and Franklin Templeton with $6.39 million. That pushes August's running total to $56.86 million — more than double July's $27.29 million — and brings cumulative inflows since the funds launched to roughly $1.552 billion.

The August surge didn't start smoothly. For seven of the first eleven trading days of the month, the products attracted virtually no fresh capital. The tide turned on August 18 with $5.81 million, followed by $13.24 million on August 20 — the largest single-day intake since late June — and then $18.38 million the next day, the biggest daily haul in three months. Trading volume across the four funds has reached approximately $508 million this month, the highest since January.

That institutional momentum arrives as XRP's on-chain activity explodes for a separate reason. The cryptocurrency exchange Gemini began offering direct XRP Ledger deposits and withdrawals to Singapore-based users on August 25, enabling near-instant transfers and direct wallet connectivity for DeFi applications. The number of active addresses on the network jumped from roughly 47,000 to over 356,000 between August 10 and 24 — a surge of more than 650% that points to genuine network usage rather than pure speculation.

The token's price response was dramatic. After sliding to a cycle low below $1.00 in mid-August, XRP climbed to nearly $1.51 within a week before sellers stepped in. The rally was sparked roughly two weeks ago when Federal Reserve policy expectations and a broader crypto upswing triggered extensive short liquidations, leaving the token up 36% from its trough. It now trades around $1.40-1.43, up roughly 29% on the week and 34% on the month.

The Relative Strength Index, which had spiked to an extremely overbought 87 during the surge, has cooled to 69.3 — elevated but no longer in extreme territory. The token sits about 25% above its 50-day moving average of $1.12, underscoring near-term strength, while still trading roughly 56% below its 52-week high of $3.18.

Regulatory tailwinds are compounding the positive backdrop. The Monetary Authority of Singapore has authorized Ripple to expand its regulated payment services in the region, linking the Gemini integration with Ripple's broader institutional push into Southeast Asia. Meanwhile, the US Senate is scheduled to vote on the CLARITY Act on September 15. According to a media report, a favorable outcome could lead Ripple to stop relocking tokens from its escrow account and instead leave the full monthly release in circulation — potentially boosting liquidity for its RLUSD stablecoin.

The supply side remains a recurring factor. On August 1, one billion XRP was released from Ripple's escrow, with 700 million immediately re-deposited, leaving a net 300 million new tokens in circulation. The next release is due September 1.

On the technical development front, Ripple product manager Julian Berridi published updated versions of the xrpl.js and xrpl-py developer libraries on Wednesday, adding support for ledger version 3.3.0. That version launched officially on August 8 and includes six proposed extensions, among them "Confidential Transfers," which encrypts balances and payment amounts for institutional users.

Ripple's former CTO David Schwartz has pushed back on outsized expectations, dismissing price targets of $50 to $100 as unrealistic without a fundamental catalyst that isn't yet visible. For now, the market appears content to digest its gains: the token has stabilized after Tuesday's swing to $1.43, with the RSI retreating from its extreme reading and the institutional pipeline continuing to deliver steady, if unspectacular, inflows.