XRP attracts $4M in ETF inflows as liquidity diverges from accumulation

Institutional investors added $4 million to XRP ETFs on Thursday, extending cumulative inflows to $1.46 billion, even as declining market depth threatens to amplify price swings.

XRP drew $4 million in net ETF inflows Thursday, lifting cumulative flows to $1.46 billion, while market liquidity contracted across major exchanges.

"Institutions are accumulating XRP through the ETF channel even as spot market depth deteriorates, creating a structural bid that could support prices once selling pressure eases," a CoinShares research note said.

The inflow snapped a one-day outflow of $5 million on Wednesday, according to SoSoValue data. XRP ETF assets under management stand at $1.03 billion. The token traded at $1.12 as of 14:00 UTC Friday, down 3.5% in 24 hours and 17.3% on the month, after losing the $1.28 support level. XRP sits below its 50-, 100-, and 200-day exponential moving averages, with the Relative Strength Index at 30 — the oversold threshold.

The divergence between institutional inflows and thinning liquidity creates two-way risk: sustained ETF buying could drive a recovery toward $1.34 resistance, but reduced market depth also raises the probability of sharp moves below $1.00 if macro conditions deteriorate further.

The liquidity picture has shifted as the broader crypto selloff deepened. Bitcoin tested $61,500 overnight before recovering to $62,700, while the Crypto Fear & Greed Index fell to 17 — Extreme Fear — down from 50 in May. Total crypto market cap dropped to $2.25 trillion from $2.53 trillion a week earlier, according to CoinGecko. U.S. spot Bitcoin ETFs ended a record 13-day outflow streak on Thursday with a modest $3.05 million inflow, after losing more than $4.4 billion in redemptions since mid-May.

XRP's accumulation trend tells a different story from the price chart. Long-term holders have added to positions during the decline, while ETF flows remained positive for all but one day in the past two weeks. The $1.46 billion in cumulative ETF inflows since the November 2025 launch represents roughly 1.3 billion XRP at current prices, or about 2.3% of the circulating supply. May 2026 alone set a monthly record of $131.94 million in XRP ETF inflows, according to SoSoValue.

The key level to watch is $1.09 support, the February low. A break below that opens the path to $1.04 and the psychological $1.00 handle. On the upside, reclaiming $1.26 would signal the first bullish reversal, with $1.34 — the SuperTrend resistance on the 4-hour chart — as the next target. A daily close above $1.34 could open the path toward $1.44 and $1.64, the 100- and 200-day EMAs.

The CLARITY Act, which cleared the Senate Banking Committee 15-9 on May 14, has reached the Senate legislative calendar. A floor vote would provide the regulatory clarity that institutional allocators have cited as a prerequisite for larger XRP positions. Ripple Labs is also preparing for a U.S. public listing, with the CEO hinting at potential benefits for verified XRP holders.

This article is for informational purposes only and does not constitute investment advice.