XRP Slides 8% as ETFs Hold 1.1 Billion Tokens
XRP fell about 8% after the US Senate failed to advance the CLARITY Act in a 49–50 procedural vote, below the 60 votes required. Some market data showed the decline briefly nearing 10%, making XRP one of the weakest major cryptocurrencies during the broader sell-off.
The setback removed a closely watched regulatory catalyst for XRP and the wider crypto market. Ripple said the failed vote does not change XRP’s existing legal status or previous court rulings. However, traders may now price in a longer wait for broader US crypto market-structure legislation.
Despite the decline, seven US spot XRP ETFs still hold about 1.1 billion XRP, valued at roughly $2 billion and equal to around 1.13% of the token’s supply. ETF assets under management were near $2 billion, although weekly inflows slowed from a record $110.5 million to about $19 million.
ETF holdings can reduce liquid supply, but they do not guarantee a price floor. Existing holdings are not the same as new buying demand. XRP is trading near $1.29, with $1.30 a key short-term level. A recovery in ETF inflows could support a rebound, while continued outflows and a loss of technical support would increase downside risk. XRP remains sensitive to regulatory headlines, institutional flows and broader crypto-market sentiment.
Bearish
The immediate market impact is bearish. XRP suffered a sharp decline after the CLARITY Act vote failed, showing that traders had priced in regulatory progress as a potential catalyst. The underperformance relative to Bitcoin suggests XRP carried additional event risk beyond the broader market sell-off.
In the short term, the failed vote may encourage profit-taking and reduce risk appetite, particularly while XRP trades near the psychologically important $1.30 level. Slowing XRP ETF inflows also weaken the near-term demand narrative. If ETF flows turn negative or XRP loses nearby technical support, forced selling and momentum-driven trades could amplify the decline.
The large ETF holdings provide a longer-term structural support factor, but they are not automatically bullish. Similar to other crypto ETF-driven markets, accumulated holdings can tighten liquid supply, yet prices still fall when new inflows slow and macro or regulatory sentiment deteriorates. A renewed acceleration in ETF subscriptions could stabilise XRP and support recovery over time. However, until inflows improve and legislative uncertainty eases, the balance of short-term risks remains negative. The failed vote does not directly remove XRP’s existing legal clarity, which may limit the severity of a prolonged sell-off.