XRP Decline Doesn't Stop ETF Inflows as Franklin's XRPZ Dominates

Franklin Templeton's XRP spot exchange-traded fund (ETF), XRPZ, recorded a daily net inflow of $3.5 million on September 17, according to blockchain media U.Today.

This was the only XRP spot ETF showing growth that day, with cumulative net inflows reaching approximately $483 million as of September 16, per Solovalue data. CoinGecko reported that all $2.73 million in daily net inflows for XRP spot ETFs on September 17 were concentrated in XRPZ.

XRP spot ETF flows showed mixed trends in September. On September 15, there was no net inflow or outflow, but $8.4 million flowed into the fund the previous day. On September 10, a $3.69 million net inflow occurred entirely within Franklin's product, while on September 9, XRP spot ETFs saw total inflows of $8.67 million, with $6.57 million going to Bitwise and $2.11 million to Grayscale.

Despite recent market volatility, Franklin's XRPZ continued to attract funds. The timing coincided with a sharp decline in XRP prices, indicating that ETF demand and spot price movements do not always align.

XRP dropped sharply following the U.S. Senate's failure on September 15 to pass the 'Clarity Act,' which required 60 votes to advance. This outcome dealt a significant blow to the crypto industry and triggered risk-off selling across digital assets. XRP traded at around $1.42 on September 14 but fell to approximately $1.28 by September 15, marking a decline of about 10%.

Recent net inflows into XRP spot ETFs occurred amid price weakness and regulatory uncertainty. Investors are watching whether this trend of continued inflows into Franklin's product will persist despite short-term price fluctuations.