XRP And XRPZ: 2 Strong XRP ETFs, But Weak Macro Backdrop

Summary The Franklin XRP ETF offers the lowest expense ratio, making it the most cost-effective long-term option for XRP exposure in an ETF format. Despite bearish market conditions, both XRPZ and Bitwise XRP ETF have attracted new assets, signaling investor preference for scale and efficiency. Restrictive macro conditions, elevated inflation, and bearish technicals justify maintaining a 'Hold' rating on both XRPZ and XRP. I await improved liquidity and clearer macro signals before considering an upgrade from 'Hold' for these ETFs. I last wrote about XRP ETFs when I covered the Franklin XRP ETF ( XRPZ ) back in March. In that article, I expressed that while I thought XRPZ was one of the better options for XRP exposure given its low sponsor fee, strong asset base, and custody features, the fund warranted caution given the current risk-off environment. In this article, I express similar views while again comparing two of the larger players in the XRP ETF space [the Franklin XRP ETF and the Bitwise XRP ETF ( XRP )]. While the underlying XRP ledger continues to exhibit unique features and general stability (given the current bear market conditions), I cite weak technicals and restrictive macro environment as reasons to maintain my ‘Hold’ rating. Overview of Funds: Sponsor Fees, AUM, and Custody Arrangements Since my last article on XRPZ, the sponsor fee waiver has since lapsed, with the current fee sitting at 0.19%. That said, on a comparative basis, XRPZ still maintains the lowest expense ratio, with the Bitwise XRP ETF fee 11 basis points higher. While 11 BPs might seem insignificant, this difference can have a meaningful effect over the long term. For that reason, I maintain the view that, based on its cost-effectiveness, the Franklin XRP ETF is the better choice for long-term investors seeking XRP exposure in an ETF wrapper. Sponsor fees (Source: Seeking Alpha) Another area of relevance that I touched on in my initial article was the importance of maintaining an adequate asset base (especially given how new the funds are). Scale continues to be an important factor, with large AUM translating to tighter spreads, improved institutional adoption, and lower risk of fund closures. In March, the Canary XRP ETF was leading in terms of AUM. Since then, XRP has surpassed the Canary fund, holding just shy of $300 million in assets. Interestingly, while market conditions have been bearish, XRP and XRPZ are the only two funds to actually draw in new assets. XRPZ’s AUM has increased from $224.93 million (2/28/26) to $246.64 million currently. This represents a 9.7% increase of funds. Likewise, XRP’s holdings have increased from $257.46 million (2/28/26) to $299.00 million currently, representing a 16.1% increase. For other XRP ETFs, fund outflows have continued. The fact that XRP and XRPZ have continued drawing in new funds while competing ETFs have experienced outflows suggests that investors are increasingly concentrating assets in the largest, most cost-effective products. AUM (Source: Seeking Alpha) ETF Sponsor Fee Net Assets (As of 2/28/26) Net Assets (As of 6/12/26) XRPZ 0.19% $224.93M $246.64M TOXR 0.30% $166.34M $123.55M XRP 0.34% $257.46M $299.00M GXRP 0.35% $72.46M $60.66M XRPC 0.50% $259.78M $254.91M XRPR 0.75% $59.75M $45.10M (Source: Individual fund websites) Another area of importance is how the various funds custody their assets. To quote from my original article, “How funds custody their digital assets remains vitally important. Most crypto ETFs rely on regulated third-party custodians that specialize in digital asset storage. These custody arrangements help ensure that the underlying assets remain secure while allowing the ETF sponsor to manage the creation and redemption process efficiently. Coinbase Custody is used by both XRP and XPRZ. ETF Digital Asset Custodian XRPZ Coinbase Custody Trust Company, LLC TOXR Anchorage Digital Bank N.A., BitGo New York Trust Company LLC, and Coinbase Custody Trust Company LLC XRP Coinbase Custody Trust Co., LLC GXRP Coinbase Custody Trust Company, LLC XRPC Bitgo Trust Company, LLC, and Gemini Trust Company, LLC Digital Asset Custodian (Source: Individual fund websites) XRP Ledger In my initial article, I discussed the XRP Ledger’s ability to facilitate payments and cross-border transactions as one of the crypto’s main value propositions. While widespread institutional adoption remains to be seen, XRP’s long-term investment case continues to center around its potential role in facilitating cross-border payments and settlement. Continued adoption by banks, payment providers, and financial institutions could serve as a significant catalyst, particularly if XRP is able to capture a share of international payment flows. However, I remain less bullish (and even somewhat skeptical) when comparing XRP’s growth prospects to other cryptocurrencies (i.e., Solana and Ethereum). For example, stablecoin activity on the XRP Ledger remains relatively limited when compared to these other networks. Additionally, when compared to other cryptocurrencies (i.e., Ethereum), XRP’s developer ecosystem remains much smaller. Therefore, it continues to be my view that XPR remains functionally limited when compared to other blue-chip L1s. For that reason, investing in XRP-USD continues to warrant caution. In this article, I again point to the number of transactions executed to provide a general overview of the underlying network stability. While activity is down since March, the number of transactions has not meaningfully changed (ranging between ~1-2 million on a daily basis). Likewise, according to XRP Scan, the number of active accounts continues to remain rangebound, not showing any significant changes to the downside. While figures are somewhat depressed since my initial coverage, the changes do not appear materially significant. Number of Transactions (Source: XRP Scan) Hotter Inflation and Higher Rates Likely Ahead Last week, we saw the release of CPI and PPI numbers, both of which came in hot, albeit not drastically out of line with expectations. Inflation came in at +4.2% Y/Y, in line with the consensus and up from +3.8% in April. Last Thursday’s PPI came in better than CPI. Headline PPI was up 1.1% M/M, in line with last month's downwardly revised 1.1% from 1.4% but above views for 0.7%. The Y/Y PPI came in at 6.5%. This is up from last month's 6.0% and above estimates of 6.4%. That said, the current macroeconomic backdrop remains generally restrictive for cryptocurrencies. Given the recent uptick in inflation, the CME FedWatch Tool indicates that the possibility of future rate cuts ahead has been reduced, while the probability of higher rates later in the year appears likely. As such, liquidity conditions continue to remain restrictive, limiting the likelihood of any sort of near-term breakout in XRP-USD. FedWatch Tool Conditional Meeting Probabilities (Source: CME Group) XRP-USD Chart XRP-USD saw major price movements to the upside in 2024 and 2025, reaching significantly overbought territory based on RSI. Since then, the price has steadily declined from approximately $3.60 in mid-2025 to just over $1.00 currently. RSI currently sits at 35.52 on the daily time frame and 30.60 on the weekly time frame. Current price levels remain below major SMAs, indicating that market sentiment remains bearish. Likewise, the recent price breakdown below the 200-week SMA further indicates bearish pessimism. XRP-USD Price Chart (Source: Stock Charts) A ‘Hold’ Rating Continues to Make Sense For Now The summer months could prove to be an important inflection point for cryptocurrency markets. By July/August, investors should have greater clarity regarding the trajectory of inflation, Fed policy, and broader liquidity conditions. If liquidity were to improve materially, I believe that a more supportive backdrop for XRP-USD would emerge. However, until then, the risk-reward profile remains more negative than positive. The Bottom Line I think both the Franklin XRP ETF and Bitwise XRP ETF are adequate ways for investors to gain exposure to the underlying cryptocurrency in an ETF format. While the XRP Ledger remains stable, and ETF adoption continues, the combination of higher inflation numbers, restrictive monetary policy, and bearish technical conditions limits the current likelihood of a sustained near-term rally. For these reasons, I maintain my ‘Hold’ rating on both XRPZ and XRP while waiting for a more supportive macro backdrop and stronger evidence of renewed momentum in the crypto space.