XRP has an interesting problem right now.
Money is flowing into XRP ETFs but the price is still struggling.
By the end of August cumulative XRP ETF inflows had reached around $1.67 billion. Weekly inflows also increased from about $39.78 million to $110.49 million.
Weekly trading volume moved higher as well. It increased from around $253 million to more than $363 million.
ETF assets also grew from about $1.33 billion to $1.44 billion.
Normally this kind of demand should give XRP some support.
But the price tells a different story.
XRP moved from around $1.70 down toward the $1.35 to $1.40 area during the same period.
That tells me something important.
Strong ETF demand does not automatically mean the price will rise.
There is still enough selling in the wider market to absorb that demand.
Another interesting part is the amount of XRP being held through these ETF products.
The seven XRP ETFs together are estimated to hold around 1.11 billion XRP.
That means more than 1 percent of the total supply has been taken away from immediate market circulation.
This could become more important over time.
If ETF products continue collecting XRP while fewer coins remain available for trading then even a moderate increase in new demand could have a bigger effect on price.
There is also growing interest from large financial firms.
Goldman Sachs reportedly holds around $87.4 million in XRP exposure and increased its position by more than $80 million compared with the previous quarter.
Jane Street and Millennium also have exposure of around $16 million each.
Yet XRP is still around $1.38.
So the main question is not whether institutions are buying.
The bigger question is whether their buying is strong enough to overcome the sellers already in the market.
The growing number of XRP ETF products is another positive development.
More products give investors more ways to get regulated exposure to XRP. It also spreads trading activity across different funds instead of keeping everything concentrated in one place.
But I would still be careful here.
ETF inflows are a good sign for long term demand. They are not a guarantee of an immediate price breakout.
For XRP to really change its trend the market needs to see stronger fresh demand outside these ETF flows too.
Right now the setup is interesting.
More XRP is being locked away while the price remains weak.
If selling pressure finally slows down then all that accumulated demand could start becoming much more visible in the price.
Until then I would watch the $1.35 area closely.
Holding that zone could give XRP room to recover.
Losing it could show that sellers still have control despite the strong ETF numbers.