XRP ETFs have pulled in fresh money for eight straight weeks, led by the Bitwise XRP ETF's $127 million haul over three months. Yet XRP itself has fallen 5% over the past week, with inflation data, Fed rate-hike bets, and a looming Clarity Act deadline weighing on the token.
XRP ETFs are extending an eight-week streak of net inflows even as the token behind them slides. The Bitwise XRP ETF, the largest fund in the category, has pulled in $127 million in the past three months, more than a quarter of its total assets. Yet XRP has fallen 5% over the past week, pulling against the inflow story.
Bitwise leads the XRP ETF field
XRP is the fifth-largest cryptocurrency by market capitalization, and a dozen ETFs now track it. Only six hold more than $100 million in assets. The Bitwise XRP ETF sits at the top of that group with $520 million in assets under management. More buyers stepping into the fund forces its manager to buy XRP in the open market, which can tighten available supply and help stabilize demand for the token.
Rate-hike bets meet the inflows
Despite that dynamic, XRP's price hasn't followed the ETF money higher. The token's 5% drop this past week followed uncooperative inflation data and a rising probability that the Federal Reserve will raise interest rates next week. If the Fed follows through or signals a hawkish stance in the months ahead, that would likely weigh further on XRP.
Clarity Act deadline adds pressure
According to The Motley Fool, Sept. 15 is the "do or die" date for the Clarity Act, legislation that XRP has proven sensitive to in the past. Should the bill fail to pass, XRP could face renewed downside. The ETF inflows point to institutional interest in XRP, but that interest still trails Bitcoin and other larger digital assets.
Weighing XRP's inconsistent response to positive catalysts against the rate-hike risk and the Clarity Act uncertainty, it's likely best to stay away from XRP over the near term, The Motley Fool's Todd Shriber concluded.
Source: The Motley Fool
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