XRP ETFs Hit Record AUM Amid Crypto Market Summer Lull

XRP ETFs have reached an all-time high in assets under management (AUM), signaling growing investor interest even as the broader crypto market experiences what analysts call a “summer lull.” The resilient performance of crypto-backed ETFs contrasts noticeably with the uncertainty playing out across traditional financial markets.

Amid renewed global trade tensions, instigated by former U.S. President Donald Trump’s proposal to increase import tariffs to as much as 50% in response to European tech regulations, traditional assets took a hit. Asian equities saw losses for a third time in four sessions, copper prices dipped in London, and U.S. equity futures also trended downward.

Yet, XRP and the broader crypto market seem to be weathering the storm better than one might expect. Especially notable is the sustained strength of Bitcoin, which remains firm around the $108,700 level, highlighting how digital assets like XRP are increasingly perceived as resilient against macroeconomic shockwaves.

“Bitcoin’s slight price drop from Trump’s tariff plans showcases the digital asset’s resilient nature and long-term investor confidence,” commented Han Xu, Director at HashKey Capital, in a Telegram message. This sentiment also extends to other major cryptocurrencies like Ether, Solana, and XRP, all of which are seeing rising institutional interest.

Still, not everything is bullish under the surface. Market observers have pointed to growing signs of hesitation. According to Alex Kuptsikevich from FxPro, “Buyers are quickly letting off steam. Bitcoin keeps getting pushed down near the $110,000 level, and while some investors are buying the dip near technical support zones like the 50-day moving average, resistance from sellers remains strong.”

Though global crypto market capitalization is up 1.8% over the week, it dropped by 0.6% in the last 24 hours to settle at $3.35 trillion. This seesawing reflects a market in flux, even as fresh capital continues to flow into crypto funds.

According to data shared by CoinShares, digital asset investment products have seen net inflows for a twelfth straight week. Nearly $1 billion poured into these products last week alone, with Bitcoin attracting over $790 million of that total. XRP ETFs also had a strong showing, raking in $11 million, while Ether and Solana followed with $226 million and $22 million respectively.

The overall ETF space now commands a record-breaking $188 billion in assets under management. This underscores a deepening interest in crypto-based investment strategies, even amid cautionary signs in the broader ecosystem.

Despite surging AUM figures, on-chain metrics paint a different story. Bitcoin’s network activity and implied volatility have dropped to levels not seen in nearly two years, according to data from The Block. This cooling down is being coined as the “summer lull” by analysts from Glassnode, who highlight reduced trading volumes and a high concentration of unrealized gains among long-term holders. These conditions could set the stage for increased volatility if sentiment shifts rapidly.

Nonetheless, the market remains tentatively optimistic. As Kuptsikevich at FxPro explained, “Capital continues to move further away from the 200-day moving average, suggesting an ongoing bullish bias. However, any sudden change in investor sentiment could trigger swift profit-taking.”

Related: XRP Price: $12M Max Pain for Bears

In summary, while XRP ETFs and other digital asset funds are attracting record inflows, market participants continue to tread carefully. The resilient structure of the crypto market, particularly XRP’s appeal in ETF formats, suggests confidence in its long-term potential—even as short-term indicators warn of caution. How this balance between enthusiasm and trepidation plays out over the coming months may define the rhythm of the crypto markets through the rest of the year.