After a record-breaking launch, demand for XRP exchange-traded funds has sharply declined. The five XRP ETFs, which had attracted over $1.2 billion in total inflows, have seen negligible to zero net new investment for weeks. Concurrently, the price of XRP has fallen more than 10% from a recent high, despite some analysts suggesting the asset may be undervalued.
It has been over three months since the first XRP ETF launched, but the demand seems to have evaporated. This week continued a trend of underwhelming performance for the funds, which attracted little to no net inflows.
The initial excitement was significant, with Canary Capital’s XRPC breaking a debut-day trading volume record. Four more products followed, and total inflows quickly surpassed $1 billion. Investor interest has since plateaued, with recent weeks showing substantial outflows or no activity at all.
For the week ending February 20, two out of four business days showed no reportable daily flows. The other two days saw minor outflows of $2.21 million and minor inflows of $4.05 million. The cumulative net inflows have remained flat at $1.23 billion as a result.
The underlying asset has also struggled, failing to maintain a price resurgence from last week. XRP now trades more than 10% lower after briefly reaching a multi-week peak over $1.65. Data shared by popular analyst CW shows that short traders continue to dominate the XRP landscape.
Nevertheless, a recent report suggested XRP could be slightly undervalued based on the 30-day MVRV ratio. It also noted that skyrocketing realized losses have historically preceded significant price rebounds for Ripple’s token.
