XRP-focused exchange-traded funds pulled in $25.8 million in net inflows on May 11, the largest single-day intake since early January, according to data from SoSoValue. The haul pushed total inflows since the ETFs launched last year past $1.35 billion. But beneath that headline number, derivatives markets are telling a different story — one of persistent short selling and cautious positioning.
Bearish Signals Beneath the Rally
XRP's price has climbed 27% over the past three months, yet funding rates on Binance have stayed negative for that entire stretch. That means short traders are paying longs to keep their positions open — a sign that bearish bets haven't been shaken by the rally. On May 11, open interest across Binance, OKX, and Bybit rose by $36.9 million, with Binance accounting for $18 million of that increase. But the exchange's perpetual cumulative volume delta sat at roughly -$434 million, pointing to sustained selling pressure even as prices moved higher.
The split between spot ETF inflows and derivatives data suggests two different sets of traders are at work. ETF buyers are betting on a longer-term story; futures traders seem to be banking on a pullback.
Ripple Prime's Growth and a $200 Million Backstop
Ripple, the company behind XRP, is expanding its institutional services. The firm secured a $200 million asset-backed debt facility from Neuberger Specialty Finance to support Ripple Prime, its prime brokerage arm. The financing comes after Ripple bought and rebranded Hidden Road, a move that helped triple Ripple Prime's revenue, driven by rising client demand for prime services like custody and trade execution.
The debt facility gives Ripple Prime a capital cushion as it scales. Institutional prime brokerage is a capital-intensive business, and the $200 million line is meant to help the unit handle larger client volumes without straining its balance sheet.
XRPL Upgrades Draw Regulated Institutions
On the network side, recent upgrades to the XRP Ledger have boosted activity. Developers have been adding features tailored for regulated financial institutions — think compliance-friendly tokenization and settlement tools. The changes are part of a broader push to make XRPL more attractive for traditional finance use cases, which in turn could support demand for XRP tokens and the ETFs that hold them.
Whether the ETF inflows can overcome the persistent short bias in futures markets is the open question. With funding rates still negative and Binance's cumulative delta deep in the red, the rally's next leg may depend on whether spot buyers can outlast the sellers.
