XRP ETF inflows total $320 million despite $746 million paper loss

Five U.S. spot XRP exchange‑traded funds (ETFs) continued to receive net new capital in the first half of 2024 even though their XRP holdings were trading far below the price at which the funds originally purchased the asset.

Fund‑level accounting gap

At the end of June, the five funds – Bitwise, Canary Capital, Franklin Templeton, 21Shares and Grayscale – reported a combined accounting cost of $1.693 billion for their XRP positions. The fair‑value estimate for the same holdings was $947.3 million, creating a paper loss of $746.1 million, or 44.1 % below cost.

Net capital activity

SEC filings show that primary‑market share creations totaled $629.9 million while redemptions were $309.1 million, resulting in net inflows of $320.8 million during the first six months.

• Bitwise, Canary Capital and Franklin Templeton together recorded $537.9 million of creations versus $53.3 million of redemptions (net +$484.5 million).
• Grayscale and 21Shares together saw $92.1 million of creations against $255.8 million of redemptions (net –$163.7 million).

Individual fund performance

FundAccounting costFair valueNet activity H1 Bitwise-$180.8 M$268.2 M+$234.4 M Canary-$229.2 M$88.3 M+$82.4 M Franklin-$174.5 M$181.4 M+$167.8 M 21Shares-$113.5 M$25.5 M–$49.5 M Grayscale-$48.0 M$66.6 M–$114.2 M

Implications

The inflows were driven primarily by three funds that continued to create shares despite the underlying asset’s decline, while the other two funds experienced net redemptions. This pattern suggests that investors may be rotating between products rather than uniformly betting on XRP’s price recovery.

With roughly 906.8 million XRP held across the five funds, a break‑even price would be about $1.87 per token. At the time of reporting, XRP traded near $1.38, leaving the holdings underwater but less severely than at the June snapshot.

Future performance of the ETFs will depend on XRP’s price trajectory and whether redemption pressure spreads beyond Grayscale and 21Shares.