Bitwise trims XRP holdings amid price weakness

TLDR

Bitwise has sold a slice of its XRP ETF holdings after a period of price and performance weakness, spotlighting near term institutional caution on XRP.

1. Bitwises spot XRP ETF saw about $3.58 million in outflows, an unusual trim after months of net buying since launch.
2. XRP is stuck near $1.05 and down roughly 25 percent over 90 days, with other XRP funds also shrinking under redemptions.
3. Long term flows into XRP ETFs and whale accumulation remain positive, so future ETF activity and regulation will show if this move is temporary or structural.

Deep Dive

1. Bitwises XRP Sale

Reporting from U.Today says Bitwise, a major XRP ETF issuer, sold part of its XRP position worth about $3.58 million on August 6 as XRP traded weak around $1.04. This is notable because Bitwise had been consistently adding XRP since spot XRP ETFs launched late last year, making the sale a break from its prior accumulation pattern and triggering concern among XRP-focused investors.

Tokenpost adds that U.S. spot XRP ETFs recorded a one day net outflow of $3.58 million on August 5, entirely from Bitwises product, confirming the trim in fund holdings and linking it directly to investor redemptions rather than a unilateral manager exit.

2. XRP Price And Broader Fund Flows

Tokenpost reports XRP at about $1.0483 on August 6, with price down 1.57 percent over 24 hours, 2.88 percent over the week, and 24.53 percent over 90 days, clearly lagging Bitcoin and Ethereum performance. That weakness is part of why Bitwises move is being framed as a response to short term pressure rather than a standalone signal.

Other institutional products are under strain too. Grayscales XRP trust sold about $180.78 million in XRP (over 100 million tokens) in the first half of 2026, cutting its holdings by roughly half and shrinking net assets from over $220 million to around $57 million, as redemptions and price declines hit the vehicle. Together, these flows show that some investors are de-risking XRP exposure during this drawdown.

3. Why It Matters And What To Watch

Despite the recent outflow, Tokenpost notes Bitwises XRP ETF still has roughly $507 million in cumulative net inflows and total spot XRP ETF assets sit near $993 million, implying that more money has gone into XRP ETFs than has left so far. On chain, CryptoQuants research suggests large holders are quietly accumulating XRP near or below realized prices alongside BTC and ETH, a pattern often seen in late stage bear markets even as ETFs show near term outflows.

Regulatory and infrastructure developments, such as Ripples new EU licenses and XRPLs cross chain integrations, continue to build fundamental use cases in the background. The key signals now are daily XRP ETF flows (especially at Bitwise and Grayscale), whether whales keep adding on weakness, and progress on U.S. market structure legislation that could affect XRPs status and demand.

Conclusion

Bitwises decision to cut XRP exposure aligns with a broader pattern of stress in XRP focused funds during a multi month price slump, even as longer term inflows and whale positioning remain constructive. Watching whether ETF outflows stabilize, whether large holders keep accumulating, and how regulation evolves will be crucial in judging if this was a tactical adjustment or the start of a deeper reassessment of XRP risk.