Wednesday saw gains for the Volatility Shares XRP ETF (NASDAQ: XRPI) and the REX-Osprey XRP ETF (CBOE: XRPR), despite the Federal Reserve’s hawkish stance. XRPI settled at $7.14, a $0.05 (0.71%) increase, while XRPR reached $10.92, up $0.14 (1.27%).
Both XRPI and XRPR concluded trading at the upper limits of their respective ranges, with XRPI fluctuating between $7.00 and $7.14, and XRPR between $10.67 and $10.92. Meanwhile, XRP, the underlying asset, traded around $1.32 to $1.33 on Wednesday, having risen from approximately $1.29 to $1.32 before stabilizing slightly below $1.33.
The demand picture behind XRP is soft, with US spot XRP ETFs recording a net outflow of $3.61 million on October 26. The total net assets of these funds have fallen from $1.70 billion on October 6 to $1.469 billion, with cumulative net inflows of $1.801 billion sitting just below the $1.804 billion peak recorded on October 22 and 23.
XRPI and XRPR are not spot XRP trusts, but rather use different structures to deliver exposure to XRP’s price. XRPI gains XRP exposure through futures contracts, while XRPR uses the Investment Company Act of 1940 framework, holding XRP and related instruments partly through an offshore subsidiary.
The cost and tracking of these funds differ from the spot trusts, with XRPI charging 0.94% a year and XRPR charging 0.75%. The daily moves of these funds show a gap, with XRPR rising 1.27% and XRPI rising 0.71% on Wednesday, while XRP itself had risen roughly 1.65% at its intraday high.
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The levels of XRP can be translated directly onto the funds, with XRP’s $1.25 support corresponding to about $6.71 on XRPI and $10.26 on XRPR, and XRP’s $1.40 resistance corresponding to about $7.52 on XRPI and $11.49 on XRPR. The base case is a range between these levels through Friday’s monthly close.
Ripple achieved several corporate milestones this month, including conditional approval for a national trust bank charter from the Office of the Comptroller of the Currency and hosting its annual Swell conference. However, these achievements have not boosted ETF demand, as the spot XRP fund complex shows stalled rather than collapsed demand.
On-chain data show selling pressure building, with exchange balances rising to 22.61 billion XRP by late October, up from 20.30 billion on October 3. Whale concentration has also reached a multi-year high, with XRP whales now controlling 68.5% of the supply.
Conversely, a reversal in exchange flows, moving tokens to cold storage, could support a recovery to $1.40.
The funds hold roughly 1.19 billion XRP, which is worth about $1.58 billion by token value, while reported net assets of $1.469 billion reflect the price on October 26. The ETF share of XRP’s supply remains small, about 1.9% of XRP’s market value, so ETF flows alone are unlikely to drive large price moves. On October 26, the total net outflow of $3.61 million was small relative to the $1.469 billion in total net assets across the funds, equal to roughly 0.25%.
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XRP reserves across exchanges were 11.81 billion tokens on October 17, reflecting differences in wallet classification. Both counts show rising balances through October.
XRP ETF Flow Trends
Institutional demand has concentrated in Bitcoin. On October 26, Bitcoin spot ETFs gained $110.34 million. Combined net flows across Bitcoin, Ethereum, Solana and XRP ETFs stayed positive at $9.92 million.
Bitwise’s fund is the largest with $680 million in cumulative net inflows. This leads Franklin’s XRPZ and Canary’s XRPC. On October 26, the Bitwise XRP ETF was the only spot fund to record a net outflow.
Demand has shrunk since late summer. In one August week, spot XRP ETFs gained $110.49 million. The best day that week brought in $28.14 million, the strongest since January 5. By mid-October, monthly inflows totaled only about $13 million.
