Bitwise’s spot XRP exchange-traded fund has surpassed $507 million in assets under management, underscoring growing institutional demand even as XRP’s recent rebound appears to be losing momentum. At the end of August, the token traded around $1.36 to $1.37, well below the $1.70 level that some market participants had been watching.

XRP rose 37% in August, its strongest monthly performance since Ripple resolved its long-running dispute with U.S. securities regulators. Still, the rally has not eliminated short-term weakness. Over the previous week, XRP was down roughly 7% as leveraged positions were unwound and buying momentum eased.

ETF demand remains the clearest support for XRP

U.S. spot XRP funds recorded about $110 million in weekly inflows, helping support demand during a period of uneven price action. Bitwise’s fund growing to more than half a billion dollars in assets suggests that XRP exposure is increasingly reaching investors through regulated products rather than solely through crypto exchanges, a shift that matters for market structure because it broadens access beyond native crypto venues.

ripple:native spot ETFs — Aug 31 🗓️ Price: $1.38 (+1.54%) AUM: $1.53B across 7 ETFs $XRP locked: 1.11B (~1.11% of supply) Daily ETF volume: $33.16M!! Bitwise led at $19.23M. 🏆 pic.twitter.com/ZD5c525Ff3 — XRP Update (@XrpUdate) September 1, 2026

That demand has given XRP a stronger institutional narrative than it had earlier in the year. Even so, inflows into funds do not necessarily translate into a steady price advance, especially when derivatives traders are reducing risk after a strong monthly move. For readers tracking the market closely, the gap between fund inflows and spot price performance is one reason the near-term trend remains sensitive to trading conditions rather than ETF adoption alone.

September upgrade may test the rally’s durability

The market is also nearing a Sept. 11 XRP Ledger mainnet upgrade expected to strengthen features tied to vaults, automated market makers and a lending protocol. The changes are intended to improve the network’s infrastructure for more sophisticated and potentially institutional uses.

According to market commentary, traders appear to be pricing in much of the ETF-driven momentum while paying less attention to the technical changes planned for the ledger. That leaves the upgrade as a possible catalyst, but also as an event that will need to demonstrate its value after implementation.