CryptoSlate
Five major US spot XRP ETFs held XRP with a combined fair value $746.1 million below accounting cost at the end of June, yet investors kept funding the product category anyway. Across the first half of 2025, primary-market share creations totaled $629.9 million against $309.1 million in redemptions, leaving the asset class net positive by $320.8 million even as the funds' own holdings traded 44.1% below the $1.7 billion the funds had originally paid for the underlying tokens.
Why it matters
The accounting gap quantifies what Bloomberg ETF analyst James Seyffart called "surprisingly resilient" XRP ETF demand, with cumulative net inflows across the asset class reaching roughly $1.8 billion by the end of August.
A position 44.1% below recorded cost gives shareholders every incentive to redeem and reallocate. That so many refused to exit is the most striking structural signal in the data, yet the headline net hides a sharp internal split across the five-fund complex.
Bitwise, Canary Capital and Franklin Templeton together recorded $537.9 million in creations against $53.3 million in redemptions, a combined net inflow of $484.5 million. Roughly $9.90 stayed inside those three funds for every $100 that came in, a creation-to-redemption ratio that signals stickier holder behavior even with their combined XRP holdings trading 42.9% below cost.
Grayscale and 21Shares moved in the opposite direction. Grayscale alone saw $180.8 million redeemed against $66.6 million in creations, while 21Shares recorded $75 million in redemptions against $25.5 million in creations. Their combined $163.7 million net outflow represented roughly 83% of all redemptions across the five-fund sample.
The split reads less like uniform category-wide conviction and more like rotation. Investors exiting higher-fee or legacy products may simply be re-entering through newer, better-structured competitors inside the same wrapper.
Market impact
The five funds held roughly 906.8 million XRP at June 30, implying a rough cost-basis breakeven near $1.87 per token.
Frequently asked questions
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How big is the gap between XRP ETFs' fair value and accounting cost?
The five spot XRP ETFs held XRP with a combined fair value $746.1 million below the $1.7 billion accounting cost at June 30, a 44.1% underwater position.
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Why are investors still buying XRP ETFs despite the paper losses?
The funds attracted $629.9 million in share creations against $309.1 million in redemptions across H1 2025, leaving them net positive by $320.8 million. Bloomberg analyst James Seyffart called the demand 'surprisingly resilient'.
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Which XRP ETFs saw the most outflows in the first half of 2025?
Grayscale and 21Shares accounted for roughly 83% of all redemptions across the five-fund sample. Grayscale alone saw $180.8 million redeemed against $66.6 million in creations.
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What price does XRP need to reach for the ETFs to break even?
At June 30 the five funds held 906.8 million XRP, implying a rough cost-basis breakeven near $1.87 per token. XRP trades around $1.38 today.
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Is the resilient XRP ETF demand real conviction or fund rotation?
The data suggests rotation more than uniform conviction. Three newer funds absorbed every dollar of selling at Grayscale and 21Shares, the legacy higher-fee products within the same category.
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