XRP ETFs enter $11.4 million Schwab collateral pool

XRP exchange-traded funds (ETFs) enter institutional mortgage arrangements to attract new capital inflows

On September 8, XRP exchange-traded funds (ETFs) appeared in institutional mortgage arrangements and attracted new investor funds, providing two very different signals for their growing role in the U.S. market.

SEC documents show that the value of XRP ETF collateral is approximately US$11.39 million.

According to data released by SoValue, the cumulative net inflow of five XRP products has reached US$1.69 billion. Meanwhile, the XRP ETF attracted nearly $2 million in funds on Tuesday, while outflows were seen from the larger U.S. cryptocurrency ETF category.

The regulatory documents for the Charles Schwab family fund contain eight XRP ETF collateral entries with a total value of approximately $11.39 million. However, the document reported on collateral received through repurchase agreements (repos) rather than Schwab's direct investment in XRP ETFs.

JPMorgan Securities and BofA Securities provided pools of collateral that contained shares from four XRP ETF issuers. These securities appear as collateral in repurchase agreements. In repo transactions, money-market funds provide short-term cash to counterparties, who transfer securities as collateral and agree to repurchase those securities under specific terms.

The disclosure did not show that Charles Schwab purchased the XRP ETF or held the underlying cryptocurrency. Instead, the shares are guaranteed in repurchase agreements between Schwab Prime Advantage Money Fund and two Wall Street counterparties. The disclosure distinguishes the filing from Form 13F, which reports qualifying long positions held by institutional investors. Previously, crypto.news explained that institutional crypto positions reported on Form 13F are ownership through listed securities, not collateral received in repo transactions.

Collateral Details and Counterparty Analysis

Schwab Prime Advantage Money Fund filed Form N-MFP3 with the Securities and Exchange Commission (SEC) on September 8, reporting on the fund's investment portfolio as of August 31. A review of the underlying XML of the document identified eight XRP ETF entries from Bitwise, Canary Capital, Franklin Templeton, and Grayscale. It reported a total value of approximately $11.39 million in collateral.

Counterparty XRP ETF Shares Collateral Value JPMorgan Securities Grayscale XRP Trust ETF (37,810 shares) $1,011,417.50 JPMorgan Securities Canary XRP ETF (209,440 shares) $3,066,201.60 JPMorgan Securities Canary XRP ETF (209,440 shares) $3,066,201.60 JPMorgan Securities Grayscale XRP Trust ETF (2,014 shares) $53,874.50 BofA Securities Grayscale XRP Trust ETF (20,591 shares) $550,809.25 BofA Securities Canary XRP ETF (42,214 shares) $618,012.96 BofA Securities Franklin XRP ETF (46,830 shares) $701,981.70 BofA Securities Bitwise XRP ETF (150,450 shares) $2,316,930.00

The $11.39 million calculation reflects the sum of all eight entries in the SEC filing. The two Canary entries have the same share number and value, but are part of different JPMorgan repurchase agreements. As such, they are separate reporting items, although the documentation alone cannot determine whether they represent economically independent shares. The previous estimate was approximately $4.8 million, and only three entries were calculated: $1.01 million in Grayscale shares,$3.07 million in Canary shares, and $702,000 in Franklin shares. It excludes five XRP ETF collateral entries elsewhere in the same document. Now there are three companies: The Franklin Ripple:Native ETF is also in the Schwab filing, with a collateral value of $701,981.70. Grayscale, Canary and Franklin all appear in the same fund.

XRP ETF attracts nearly US$2 million, competitors suffer losses

The collateral disclosure came as the XRP ETF became the only one of the major U.S. spot cryptocurrency ETF classes to achieve significant positive capital flows on Tuesday. According to SoValue, these five products attracted a net inflow of nearly $2 million. Their cumulative net inflows reached approximately US$1.69 billion. In addition, the products absorbed approximately $173 million in the previous 30 days, suggesting Tuesday's results were part of a longer positive trend rather than an isolated event.

The rest of the larger U.S. cryptocurrency ETF markets are moving in the opposite direction. The spot Bitcoin ETF recorded a consolidated net outflow of approximately US$46.65 million on September 8. Grayscale's GBTC led the wave of redemptions, with approximately $65.51 million in redemptions. This amount was partially offset by positive inflows from BlackRock's IBIT, Bitwise's BitB, Ark and 21Shares 'ARKB, and Morgan Stanley's MSBT. Together, these four products added about $41 million. Since GBTC redemptions exceeded the sum of combined inflows and activity in the remaining products, the Bitcoin fund group ended up negative. This result ended four consecutive trading days of positive capital flows for Bitcoin ETFs.

Collateral use and capital inflows show different trends

These two data points should not be combined into a single measure of institutional demand. ETF inflows track net purchases and redemptions. Collateral disclosures identify pledged securities used to support financial transactions.

Schwab's documents show that XRP ETF shares are eligible for entry into a pool of repurchase collateral assembled by large securities dealers. Tuesday's inflow data alone showed that investors added modest net capital to XRP products, while Bitcoin and other major categories experienced outflows. Before the document appeared, demand for XRP ETFs had increased. In related reports, these products set record trading volumes as cumulative inflows exceeded US$1.57 billion in August. The latest SoSoValue totals extend that figure to approximately $1.69 billion.

Other documents also show direct shareholdings by financial institutions. Goldman Sachs disclosed US$86.5 million in positions on five XRP ETFs in the second quarter of 2026, compared with no such exposure at the end of the previous quarter. Future monthly N-MFP3 reports will show whether the XRP ETF remains in Schwab's repurchase collateral pool after the disclosed agreement expires or is extended. The daily fund flow report will separately indicate whether investor demand continues after the recent monthly absorption of $173 million.