Bitwise’s spot exchange-traded fund (ETF) for XRP has exceeded $507 million in assets under management (AUM), underscoring the growing appetite from institutional investors for regulated exposure to the token. Despite strong money flows into the ETF, XRP has faced resistance in maintaining its recent momentum in the broader market.
ETF inflows drive institutional interest
Bitwise is a leading digital asset manager, offering cryptocurrency-based investment products for both individual and institutional clients. During the last week, U.S. spot XRP funds registered nearly $110 million in new inflows. This surge marks a significant shift, as more investors prefer to gain exposure to XRP through regulated financial products instead of relying solely on cryptocurrency exchanges.
XRP’s rise in institutional adoption has given the asset a stronger narrative among large investors compared to earlier in the year. However, analysts cautioned that while increased ETF participation supports demand, it does not guarantee continued price appreciation—especially as derivatives traders scale back risk after a sharp rally.
At the end of August, XRP traded at approximately $1.36 to $1.37, well below the $1.70 resistance level some traders had anticipated. Over the course of August, XRP delivered a 37% gain, representing its strongest monthly performance since Ripple reached a settlement in its high-profile dispute with the U.S. Securities and Exchange Commission (SEC). Still, the token dropped about 7% in the following week, largely due to leveraged positions being unwound and declining buying activity.
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AAPLXRP posted a 37% monthly gain in August—the best run since Ripple’s settlement with U.S. securities regulators. Nonetheless, the token saw a 7% dip over the previous week as market participants reduced risk and positive momentum weakened.
| Metric | Value | Reference Period |
|---|---|---|
| XRP closing price | $1.36–$1.37 | End of August |
| Resistance level tracked | $1.70 | Current |
| Monthly gain | 37% | August |
| Weekly decline | 7% | Prior week |
| Bitwise XRP ETF AUM | $507 million | Current |
| Weekly ETF inflows | $110 million | Current week |
XRP Ledger upgrade on the horizon
An upcoming XRP Ledger mainnet upgrade scheduled for September 11 has drawn attention in the community. The upgrade aims to enhance features related to vaults, decentralized automated market makers, and lending protocols. These changes are expected to improve the utility and sophistication of the ledger, particularly for institutional or advanced use cases.
Despite these planned technical upgrades, many traders have focused primarily on ETF-driven momentum instead of developments on the XRP Ledger. Market participants indicate that the effectiveness of the upgrade will be evaluated once it is in place, potentially serving as a new catalyst or a test for the ongoing rally in XRP.
Mini dictionary: XRP Ledger mainnet upgrade, a scheduled update improving network infrastructure with features such as vaults, automated market makers (AMMs), and lending protocols, aiming to expand the ledger’s appeal for institutional adoption and advanced use cases.
Short-term outlook and key themes
Several analysts emphasize that, while capital inflows to funds have supported XRP, short-term risks remain. The recent retreat in price, following the best monthly rally since the end of the SEC case, suggests a cautious approach among leveraged traders and large holders.
Ongoing debates include the paths for XRP to reclaim higher price levels, with some market participants discussing possible rallies to $4 or even $7, but with significant caveats related to market sentiment and technical resistance. The upcoming mainnet upgrade could alter trading dynamics as the effectiveness and adoption of new ledger features become clearer.
The evolving institutional narrative, continued product innovation, and sustained ETF inflows may shape the next phase for XRP in the months ahead.
