The wall of institutional money that once surrounded the most popular new investment funds is starting to show significant fractures. XRP (XRP-USD) is going through a situation where the initial launch euphoria has been replaced by cold market reality. While seven spot ETFs pulled in over $1.3 billion during their debut late last year, that flood of capital has slowed to a faint trickle.
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Institutional Inflows Freeze into a $28 Million Leak
The math for these new funds has become increasingly uncomfortable for latecomers. Currently, XRP ETFs hold about $1 billion in total assets, which represents roughly 772 million tokens. While this sounds like a massive war chest, it actually masks a sharp decline in confidence.
March marked a grim milestone for the sector, recording the first month of net outflows with $28 million leaving these funds. This exodus coincides with a brutal price slide; the token is currently trading near $1.38, finding some stability today but still down roughly 40% from the peaks seen in January.
Much of this pressure is coming from the broader “Extreme Fear” gripping the market due to the Liberation Day tariffs, which have pushed many casual investors to the sidelines.
Whales Move Aside as Leverage Resets
Despite the headline-grabbing drop in ETF assets, the internal data reveals a more complex story. The number of tokens sitting on public exchanges has plummeted to 12.9 billion, the lowest level we have seen in nearly five years.
When tokens exit exchanges at this scale, it usually signals that large-scale holders are moving their assets into long-term storage rather than preparing to sell. At the same time, the risky leveraged bets have been completely flushed out. Open interest in futures has crashed by 70%, dropping from $660 million to just $203 million. This reset has effectively stripped the market of its speculative froth, leaving only the most patient buyers behind to weather the current geopolitical storm.
The CLARITY Act Offers a Path to $2.80
The future of the price now rests almost entirely on a single piece of legislation in Washington. Proponents are pinning their hopes on the CLARITY Act, which is expected to reach a Senate committee markup as early as this month or next.
If this act advances, it would create a federal regulatory framework that would allow U.S. banks to handle and trade the token directly. This could reignite the institutional engines that powered the initial $1.3 billion surge. While Standard Chartered (SCBFF) slashed its 2026 price target by 65% down to $2.80, that figure would still represent a 100% gain from today’s levels. However, if the Senate vote fails, some analysts warn the support floor could crumble, potentially dragging the price toward the $0.70 mark by the fall.
Leading XRP ETFs by Assets under Management (AUM)
The following funds represent the core of the U.S. XRP ETF market as of April 8, 2026:
