Spot XRP ETFs recorded $3.58 million in net outflows on August 5. Unlike Bitcoin ETFs, which sometimes see large inflows to buy weakness, XRP ETF flows have been persistently negative—a sign institutional buyers have abandoned the position.
The Senate left for August recess without scheduling a vote on the CLARITY Act, which would classify XRP as a commodity rather than a security. Without regulatory clarity, institutions remain hesitant. The vote could come in September, but months of uncertainty have eroded patience.
While XRP is down 46%, Bitcoin has fallen 29% and Ethereum 37% in 2026. XRP's underperformance reflects specific regulatory risk—the absence of clarity on whether Ripple's token qualifies as a security under US law.
A stronger US dollar and liquidations of leveraged long positions have accelerated XRP's decline. Each percentage point the dollar strengthens reduces the appeal of crypto in international markets, a structural headwind altcoins cannot overcome.
XRP recovery depends entirely on the Senate passing the CLARITY Act, reclassifying XRP as a commodity and eliminating the securities overhang. Without that catalyst, institutional buying will remain frozen. Watch the Senate calendar for a September vote—it's XRP's only realistic path to recovery this year.
Read More →