XRP ETFs see inflows as Schwab filings reveal institutional collateral use

XRP-linked exchange-traded products (ETFs) are seeing increased institutional activity and divergent capital flows compared to other major cryptocurrencies. On September 8, U.S. spot XRP ETFs recorded approximately $1.55 million in net inflows, a notable trend as Bitcoin, Ethereum, and Solana ETFs simultaneously experienced outflows.

Regulatory filings from Charles Schwab reveal that its Prime Advantage Money Fund has listed nearly $4.8 million in XRP ETF shares—including products from Grayscale, Canary, and Franklin—as collateral in repurchase agreements. These filings indicate that while the fund does not directly purchase the ETFs, the assets are being used in institutional financing arrangements with counterparties such as JP Morgan and BofA Securities.

In a separate development, asset manager 21Shares addressed long-standing misconceptions regarding the relationship between Ripple and the XRP Ledger (XRPL). The firm clarified that while Ripple is a private company that helps build infrastructure, it does not control the decentralized XRPL network. 21Shares noted that Ripple operates only one of approximately 35 validators on the network's default list, emphasizing the distinction between the company, the native asset, and the open-source blockchain.