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XRP is getting left behind in the crypto bounce even as ETFs keep attracting investor money
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- DeepHorus
XRP is falling behind in the latest crypto market rebound, sliding about 5% to $1.03 last week even as bitcoin, ether, and solana posted gains and the broader crypto market added 1.4% in value. The underperformance comes despite continued investor interest in XRP-focused exchange-traded funds, which attracted net inflows for a fourth straight week. However, new capital entering these funds collapsed roughly 93% week-over-week to around $1 million, according to data from SoSoValue. In contrast, bitcoin and ether funds pulled in hundreds of millions during the same period.
This divergence highlights a puzzling disconnect between fund flows and price action. While the presence of inflows signals some institutional appetite, the dramatic slowdown suggests waning momentum. Analysts point to a mix of regulatory and market factors that may be tempering enthusiasm for the payments-focused token. The broader crypto rally has so far bypassed XRP, leaving traders to question its near-term catalysts.
At the center of the uncertainty is the CLARITY Act, legislation that many believe would clarify XRP’s regulatory status and unlock broader institutional participation. The Senate has delayed consideration of the bill, and a vote is not expected until mid-September at the earliest. This regulatory overhang continues to weigh on sentiment, making some investors hesitant to increase exposure. Until the legal landscape becomes clearer, XRP may struggle to keep pace with its larger peers.
On the flow side, the setup currently looks balanced, according to Iliya Kalchev, an analyst at digital asset platform Nexo. “XRP’s positioning looks patient in its own right, with order flow staying large even as volume metrics turn neutral — quiet absorption rather than capitulation or a confirmed breakout,” Kalchev said in an email. His comments suggest that while momentum is lacking, selling pressure is not intense either.
Long-term optimism, however, remains high among some industry voices. Jake Claver, chairman of Digital Ascension Group, a multi-family office focused on digital assets, argued that XRP is increasingly positioned for a structural role in global finance. “XRP is looking more and more like it will claim its spot as a global bridge asset and possibly be recognized by the BIS as tier-one asset in the future,” Claver said, referring to the Bank for International Settlements’ highest capital classification.
Looking ahead, XRP’s trajectory will likely depend on regulatory developments and whether ETF inflows can regain momentum. A decisive move could come after the Senate’s September vote, but until then, the token may continue to lag. For now, investors are watching for any shift in positioning that could signal a breakout or a deeper correction.
For the broader market, XRP’s sluggishness serves as a reminder that not all digital assets move in tandem. Even as bitcoin and ether capture institutional flows, smaller or regulation-sensitive tokens face unique hurdles. The coming weeks will be critical in determining whether XRP can catch up or remain left behind.
