XRP ETF Honeymoon Ends as Inflows Implode 79% Since May 📉

Shares and holdings of XRP-focused investment products dropped sharply in first-half filings, with the trust's reported metrics showing steep declines from prior reporting periods. The pullback comes as inflows into spot XRP exchange-traded funds have collapsed 79% since May, according to regulatory and product flow disclosures reviewed by industry analysts.

The deceleration coincides with a stall in the CLARITY Act, the legislative package that market participants had cited as a potential catalyst for clearer digital asset oversight in the United States. Without progress on the bill, several issuers have reportedly slowed marketing efforts tied to their XRP funds, and authorized participants have reduced creation volumes.

Industry data also indicated that the broader altcoin segment has faced renewed pressure amid shifting macro conditions, with capital rotating back into $BTC and $ETH products after months of preference for smaller-cap tokens. Grayscale and competing issuers have not publicly commented on the specific decline in their first-half shareholder letters.

Market participants have pointed to a separate analysis suggesting that $XRP could be positioning for a structural move, though the report stopped short of projecting a price target or timeline. On-chain analytics firms tracking wallet concentration have flagged a modest increase in dormant supply, while derivatives open interest has trended lower alongside ETF inflows.

The CLARITY Act's path forward in the current congressional session remains uncertain, and no new floor vote has been scheduled. XRP product issuers are required to file updated prospectuses and shareholder reports with the Securities and Exchange Commission on a semi-annual basis, with the next reporting cycle expected in the fourth quarter.