The XRP community has been buzzing with talk of a potential spot exchange-traded fund (ETF), with many retail and institutional voices anticipating a decision from the U.S. Securities and Exchange Commission (SEC). However, recent developments suggest a stark contrast between investor enthusiasm and actual market behavior.

Over the last three weeks, inflows into Teucrium’s futures-based XRP ETF (ticker: XXRP) have collapsed by a staggering 98%. This dramatic decline highlights a concerning disconnect between the social media-driven hype around XRP ETFs and the on-chain and market performance that ultimately drives investor sentiment.

Teucrium’s XXRP Fund Faces Sharp Decline in Inflows

started in April, Teucrium’s XXRP ETF initially generated considerable attention. Within weeks, the fund managed to grow to over $100 million in assets under management. Many saw this as a sign of strong investor interest in XRP-related investment products, especially those targeting institutions via traditional finance tools.

But as of early June, the story has shifted. Weekly reports show a consistent decline in inflows:

• Second week of May: $31 million

• Third week: $19.3 million

• Fourth week: $12.1 million

• Current week: Just $600,000

That final number marks a 98% drop in just three weeks and a 14% decline in the last five days alone.

XRP ETF Hype Isn’t Translating to Investor Commitment

The sudden drop in inflows comes during a broader market correction that has impacted most major cryptocurrencies, including XRP. However, the speed and scale of the decline in XXRP’s inflows suggest more than just market volatility. It appears that investor expectations and social media optimism may not be aligned with actual demand.

Despite XRP’s position as the fifth-largest cryptocurrency by market cap, the appetite for exposure via futures-based ETFs appears to be waning. Some market analysts argue that the lack of real-world adoption for futures XRP products—compared to Bitcoin or Ethereum equivalents—may be a reason for the lackluster follow-through.

Ethereum ETF Sees Growth as XRP Lags Behind

While XRP ETF inflows have dwindled, Ethereum-based ETFs are gaining traction. Recent data shows that Ethereum-focused funds have continued to see new highs in inflows. This contrast points to a growing investor preference for ETH exposure over XRP when it comes to ETF-based products.

Some investors speculate that Ethereum’s broader DeFi utility, combined with regulatory clarity compared to XRP, gives it a more favorable position for institutions and asset managers seeking longer-term returns.

What About the Spot XRP ETF?

Interest in a spot XRP ETF—a product that would directly hold XRP rather than futures contracts—has been mounting. According to prediction market platform Polymarket, investor sentiment is heavily leaning toward SEC approval, with over 93% odds pricing in a green light for the product.

However, the reality of XXRP’s performance is a red flag. While initial forecasts by analysts suggested a spot XRP ETF could attract up to $2 billion in inflows post-approval, that prediction now appears less certain.

The disparity between social media support and actual capital inflow suggests that many backers may be overestimating the strength of the market’s real interest in XRP ETFs. If the current futures fund is struggling to maintain momentum, the question arises: would a spot ETF perform any better?

XRP Price Under Pressure Amid Market Shifts

Adding to the uncertainty, XRP’s price has shown signs of weakness in recent weeks. At the time of writing, XRP is trading below key technical levels and facing bearish sentiment. Analysts caution that without renewed buying interest or a strong fundamental driver—such as SEC approval for the spot ETF—XRP could test support levels near $0.50 or even lower.

Some even suggest that the token might struggle to sustain levels above $2 if bearish trends persist, regardless of any ETF approval.

SEC Decision Still Pending

The crypto market is now looking ahead to the SEC’s ruling on the Ripple ETF. A decision is expected sometime in June 2025, though exact dates remain speculative. Until then, investors and traders will likely monitor both on-chain data and institutional behavior closely.

For now, the takeaway is clear: while social media excitement surrounding an XRP ETF remains high, actual inflows tell a different story. Whether the spot ETF will meet expectations—or fall short like its futures counterpart—remains to be seen.

Conclusion

The crash in Teucrium’s XXRP inflows paints a sobering picture for XRP ETF enthusiasts. Despite strong community support and growing optimism over regulatory approval, the real-world investment behavior doesn’t currently reflect the hype.

As the market awaits the SEC’s decision on a potential spot XRP ETF, all eyes will remain on fund flows, price action, and broader crypto sentiment. Only time will tell whether XRP can convert its buzz into sustained institutional interest.