Late-June washout cut XRP leverage; ETF and spot demand needed

A late-June washout reduced excess XRP leverage and lowered the immediate risk of chained liquidations. The token’s near-term performance will be shaped by ETF allocations and spot-market buying that add steady demand.

XRP traded around $1.08, up about 2.7% over seven days, with a market capitalization near $67 billion. Twenty-four-hour spot volume was roughly $402 million, versus about $2.25 billion in futures volume. Futures open interest stood near $2.35 billion and one-day liquidations were about $8.3 million. During the washout, XRP briefly fell to about $1.02; a later dip near $1.07 triggered roughly $9 million in long liquidations and saw futures open interest decline to about $2.34 billion. Reported futures turnover has fallen from more than $30 billion in the same period last year to under $3 billion currently.

Open interest measures how many futures contracts remain active. A drop in open interest can reflect forced liquidations, traders closing positions voluntarily, or reduced exposure as volatility rises. Fewer crowded long positions reduce the number of traders sitting at liquidation levels.

Regulated spot ETFs focused on XRP recorded modest net inflows of about $23 million over a late-June multi-day window, while spot Bitcoin and Ethereum ETF products recorded larger net outflows in the same period. In a recent reporting window for digital-asset investment products, overall outflows were about $1.67 billion, and XRP funds drew roughly $20 million in inflows. One passive XRP trust reported net assets around $230.7 million in early June. ETF structures that hold XRP in custody and avoid leverage do not use derivatives to create exposure.

Net creations of ETF shares are the direct indicator of fresh ETF purchases of underlying XRP; assets under management can rise because of price moves or preexisting seed inventories and do not always signal new buying. Custody balances that back ETF shares indicate how much XRP is held inside fund structures rather than circulating through secondary markets.

Key market indicators to monitor are the balance between spot volume and derivatives turnover, sustained positive ETF net creations during weak market days, and growth in custody balances that back fund shares. After the washout, futures-driven liquidations declined and open interest eased; changes in ETF activity, spot turnover and custody holdings will affect whether buying pressure increases or leverage rebuilds.