XRP investors poured $320M into ETFs while the funds sat on a $746M paper loss
Five major US spot XRP products held XRP with a combined fair value $746.1 million below accounting cost at the end of June, but investors kept buying anyway.
According to SEC filings, Bitwise, Canary Capital, Franklin Templeton, 21Shares, and Grayscale recorded roughly $629.9 million in primary-market share creations against $309.1 million in redemptions during the first half of the year.
That left capital activity positive by about $320.8 million even as the funds' combined XRP holdings sat 44.1% below their $1.7 billion accounting cost.
The gap quantifies what Bloomberg ETF analyst James Seyffart called “surprisingly resilient” XRP ETF demand in an Aug. 31 post, where he put cumulative net inflows across the asset class at $1.8 billion.
| Five-fund XRP ETF snapshot | Amount |
|---|---|
| XRP accounting cost at June 30 | $1.693B |
| XRP fair value at June 30 | $947.3M |
| Gap vs accounting cost | -$746.1M |
| Percent below cost | -44.1% |
| H1 share creations | $629.9M |
| H1 redemptions | $309.1M |
| Net capital activity | +$320.8M |
Why anyone would buy into a position already underwater
Fair value across the sample of five funds totaled $947.3 million as of June 30, versus the nearly $1.7 billion those funds had originally paid.
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