Bitwise XRP ETF is reported to have redeemed $3.58 million

Bitwise XRP ETF outflow of US$3.5 million: interpretation of shareholder redemption rather than asset manager bearish

According to reports, on August 6, Bitwise XRP ETF experienced an outflow of approximately US$3.58 million. Social media accounts described the move as an abnormal sell-off by asset management companies, which attracted attention.

Summary

Bitwise's XRP ETF reportedly recorded a net redemption of $3.58 million during Wednesday's U.S. trading session. Official data shows that as of August 4, 2026, the trust held 293.9 million XRPs. The outflow of ETF funds reflects shareholder redemption and does not mean that Bitwise made a bearish proactive decision. The trust may allocate XRPs in physical form, or sell tokens to satisfy cash redemption orders. XRP is trading close to $1.07, still down about 70% from the all-time high of $3.65 set in July 2025. Available evidence supports a narrower conclusion: the fund did experience net redemptions during the August 5 U.S. trading session. There are no public transaction details that indicate Bitwise made proactive market judgments about XRP. This difference is important because the fund is a trust that holds XRP for shareholders. Bitwise Investment Advisers is the initiator of the product, and authorizes financial institutions to process share creation and redemption orders based on trust operating documents.

Bitwise XRP ETF outflow is actually shareholder redemption

The Bitwise XRP ETF authorizes participants to create and redeem shares in units of 10,000 shares. Therefore, a net outflow indicates that more fund shares were redeemed than shares were created. This in itself does not reveal why investors have reduced exposure, nor does it mean that Bitwise has changed its view of XRP. The trust can settle redemption in two ways: for physical redemption, it transfers the corresponding XRPs to the authorized participant or its designee; for cash redemption, the promoter arranges for the sale of the required XRPs and remitted the cash proceeds. Therefore, redemption may involve a sale of XRP, but this is still part of the fund mechanism and not Bitwise's proprietary trading. In addition, Bitwise's official page shows that as of August 4, the trust held 293.93 million XRPs worth US$314.39 million. The page also lists 26.31 million outstanding shares, with net assets of approximately US$314.37 million, and each net asset value of US$11.95. At the time of inspection, this page had not yet been updated to the position data of August 5. This time lag prevented the public positions page from confirming the reported $3.58 million reduction. The post behind the report also did not provide a transaction hash, wallet address or identified counterparty. Calling this report "on-chain data" does not determine whether XRP is reflected by a cash sale, physical transfer, or through changes in fund shares.

Redemption is part of fund operations

The fund's quarterly filing on March 31 showed that previous redemptions had occurred and did not prove that Bitwise had changed its view of XRP. In the first quarter, the trust redeemed approximately 9.73 million XRPs for shares and delivered another 2.69 million XRPs through physical redemption. However, as of the end of March, its XRPs still increased from 131.22 million at the beginning of the year to 194.9 million. As of August 4, the total official holdings had climbed to 293.93 million XRPs. The increase provides broader context for the reported daily outflow of $3.58 million. It has been previously reported that as of the end of June 2026, Bitwise's XRP products in the United States and Europe have attracted more than US$200 million in funding. The claim that Bitwise made a "bearish" XRP sell-off has not been confirmed. A single redemption may reflect portfolio rebalancing, liquidity needs, arbitrage or a customer's risk decision. It neither identifies the beneficiary investors behind the order, nor does it indicate that Bitwise executives expect XRP to fall.

Weak XRP has attracted much attention on ETF fund flows

On August 6, XRP was trading close to $1.07, and CoinGecko showed its 24-hour range of $1.05 to $1.08. The token is still down about 70% from the all-time high of $3.65 set in July 2025, and its market value is close to $67 billion. Bitwise products also came under downward pressure. Its official page shows that as of July 30, the year-to-date return on net asset value is-41.70%. The fund's net asset value fell 0.76% on August 4, while the market price fell 0.91%. These data help explain why redemptions are attracting attention, but they do not prove that a single day's flow of funds caused XRP prices to fall. In terms of demand from relevant institutions, the U.S. spot XRP fund recorded a net inflow of US$25.8 million on May 11, of which Bitwise accounted for US$7.6 million. Recent market analysis also pointed out that as XRP approaches the support level of US$1, ETF capital inflows weaken and giant whale activity also tends to decrease.

The next step for Bitwise XRP funds

The next confirmation should come from Bitwise's daily position data. Changes in XRP holdings, outstanding shares and net assets can show whether the August 5 report represents a completed redemption. Subsequent quarterly SEC filings will provide more details, including XRPs for cash sales, XRPs for physical transfers and shares redeemed during the reporting period. Before these records were released, the most reasonable description was that there was a reported outflow of $3.58 million in ETF funds. Describing it as Bitwise turning bearish is beyond what the evidence can support. Markets should also distinguish the role of fund promoters from redemption decisions initiated through authorized participants and their clients.