XRP ETF Inflows Hit $51 Million in February as Bitcoin and Ethereum Products Bleed Capital

Key Insights:

• XRP ETF products registered $51 million in net inflows during early February 2026, marking a sharp divergence from spot Bitcoin, Ethereum, and Solana ETFs that saw net outflows.
• Franklin and Bitwise XRP ETF captured roughly $20 million each during the February 2-6 week, while 21Shares’ TOXR faced net redemptions.
• The inflows represented approximately 5% of total all-time Ripple ETF flows, driven by fee waivers and distribution advantages.

US-traded spot XRP ETF products pulled $51.3 million in net inflows across February 2-9, according to CoinGlass flow data.

The XRP news stood in contrast to spot Bitcoin, Ethereum, and Solana ETF products, which registered net outflows during the same window.

The divergence occurred despite broader crypto sentiment remaining weak, with multiple outlets describing capital-starved conditions across digital asset markets.

Franklin and Bitwise Captured Most Weekly Creations of the XRP ETF

Net inflows in February clustered heavily in the Franklin XRP ETF (XRPZ) and the Bitwise XRP ETF (XRP), with each product pulling roughly $20 million.

CoinGlass data showed XRPZ received approximately $23.7 million and Bitwise XRP received approximately $20 million in February.

21Shares XRP ETF (TOXR) faced net redemptions of roughly $350,000 during the same period.

The flow concentration reflects early-category leader dynamics, with liquidity and spreads improving fastest in products that secure initial platform placement.

Franklin’s fund page emphasized “credible oversight” and “simplified access,” framing language that matters for broker-dealer shelf space.

Additionally, Franklin disclosed a 0.19% gross sponsor fee but showed a zero net sponsor fee as of early February 2026, indicating an active waiver.

The product tracks the CME CF XRP-Dollar Reference Rate, and lists an inception date of November 24, 2025.

Grayscale’s GXRP disclosed a zero gross expense ratio during a waiver period ending February 24, or upon reaching $1 billion in assets under management.

After the waiver expires, the fee steps up to 0.35%. 21Shares disclosed a 0.30% sponsor fee in its prospectus materials, with no waiver in effect.

The fee differential created a clean cost ladder across the category.

The waivers lowered the hurdle rate for allocators to trial XRP price exposure through exchange-traded wrappers, prompting incremental allocations labeled “mandate-compliant trial exposure” on a risk-off tape elsewhere.

XRP ETF Fund Flow | Source. CoinGlass

Primary-Market Creations Matter More Than Secondary Volume

The reported flows measured primary-market creations and redemptions, not secondary-market trading volume.

Official ETF creations represent share issuance designed to track XRP via a defined benchmark and trust mechanics. At the same time, secondary-market trading volume can run high with no net new underlying demand.

The products formalized XRP price exposure into benchmarked, exchange-traded wrappers with disclosed fees and operating mechanics.

As regulators allowed more spot-crypto wrappers to trade on major exchanges, those wrappers became part of the market’s plumbing, creating flow resiliency even when crypto sentiment was broadly weak.

XRP ETF: Sponsor-Fee Mechanics Creates Mechanical Selling Pressure

Issuer economics introduced a wrinkle in the “inflow equals price support” narrative.

21Shares’ prospectus explicitly stated the sponsor fee was payable in XRP and that the sponsor could elect to convert some or all of the sponsor fee XRP into cash by selling it.

That created steady, non-sentiment sell flow over time, meaning “net inflows” and “spot support” were related but not identical.

The mechanically generated supply could offset demand from creations, weakening any simplistic assumption that XRP ETF inflows translated directly into XRP price appreciation.

Grayscale’s GXRP showed intermittent redemptions during the February 2-9 window, including a net outflow on February 5.

The one-day outflow was most usefully framed as a “rotation signature” rather than category failure, especially while fee waivers were active and switching costs remained low.

Grayscale’s fee waiver ends on February 24, creating a clear calendar trigger to monitor fee-driven rotation.

If GXRP’s effective fee rises to 0.35% while Franklin continues to display a zero net sponsor fee, the week following expiration would test whether creations migrated into XRPZ and XRP, or whether category growth slowed.

The event study would cleanly separate “incremental XRP demand” from “wrapper switching.” The test mattered because the strongest defensible framing for early-February XRP ETF inflows was “microstructure-driven divergence.”

Time-bounded fee waivers, combined with a young AUM base, meant a handful of authorized participant creations could move the week’s total.

XRP ETF Fees by Product | Source: X

Alt-ETP Battle Shifted to Distribution at Lowest Effective Cost

The XRP ETF divergence signaled the alt-ETP battle was shifting from “can you launch?” to “can you win distribution at the lowest effective cost.”

Flows should be interpreted as much through market structure, consisting of platform access, AP behavior, and fee cliffs, as through pure sentiment on XRP price.

If broader crypto ETF products experience outflows while XRP ETF products attract inflows, the divergence warrants two tests.

First, whether XRP inflows are concentrated into two low-effective-fee leaders, suggesting incremental demand. Second, whether those inflows correlated with spot performance and market depth or mostly reflected wrapper-to-wrapper switching.

The February 2-9 window showed the first test passed: flows clustered in XRPZ and XRP.

Franklin XRP ETF (XRPZ) traded on NYSE Arca, 21Shares XRP ETF (TOXR) traded on Cboe BZX, and Grayscale’s GXRP and Bitwise’s XRP traded as ETF vehicles on major US exchanges.

The $51 million in net inflows during early February represented roughly 5% of total all-time XRP ETF flows. The next observable catalyst is February 24, when Grayscale’s waiver expires, and the fee differential across the category widens further.

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