Investment in U.S.-listed spot XRP ETFs is unstoppable, with notable capital inflow observed over 11 consecutive trading days. Nearly $170 million in new funds has been drawn in, even though XRP’s price has dropped slightly from its late August surge. Nevertheless, the persistent demand for XRP ETFs underscores investor interest.
XRP ETF Demand: A Resilient Trend?
The sequence of positive inflows into XRP ETFs began on August 18. During this time, XRP’s price showed volatility, trading at around $1.33 early Wednesday morning, slightly below the peak of $1.45 reached on August 27. Despite this, the current value remains above the mid-August level of approximately $1.00.
While XRP ETF inflows are strong, there is a notable scale difference when compared to Bitcoin ETFs. Spot Bitcoin ETFs in the U.S. recorded a net inflow of $2.26 billion over just six trading days at the end of August, surpassing the entire cumulative inflow into XRP ETFs since their inception.
What Drives Goldman Sachs’ Dominance in XRP ETFs?
According to Bloomberg Intelligence data compiled from 13F filings, Goldman Sachs holds the largest disclosed institutional position in XRP ETFs, with nearly $87.4 million as of the end of the second quarter.
Goldman Sachs is followed by Jane Street with $16.6 million and Millennium Management with $16.2 million in XRP ETF investments.
Goldman Sachs’ significant ETF position might not necessarily indicate a long-term commitment to XRP’s price. These positions could stem from activities such as market-making, basis trading, or fulfilling asset management client orders.
Institutional 13F filings disclose U.S.-listed equities and fund positions every quarter. While these reports provide insights into how professional investment firms utilize new XRP ETFs, they do not reveal whether such positions are hedged against trades in other markets.
Do Investment Advisors Hold the Majority in XRP ETFs?
Investment advisors hold a substantial share of the declared $183 million institutional XRP ETF positions, approximately $120 million. Hedge funds hold roughly $25 million, brokerages around $17 million, and banks about $14 million.
Most of the growth over the quarter came from investment advisors. They increased their XRP ETF positions by around $90 million, contributing significantly to the total growth across all investor categories, which amounted to $103 million.
- ETF inflows and 13F filings represent different time frames and data sets.
- 13F filings display ETF positions as of June 30.
- Recent inflow streak reflects new capital entering funds at the end of August and beginning of September.
Current ETF positions may not fully reveal investors’ overall exposure to XRP. Institutions like Goldman Sachs might hedge part or all price risk associated with XRP ETFs using futures or other financial instruments. Therefore, it remains uncertain whether disclosed institutional positions from the second quarter are still maintained, which will be clearer with the upcoming November 13F filings.
