XRP investors poured $320M into ETFs while the funds sat on a $746M paper loss

Five major US spot XRP products held XRP with a combined fair value $746.1 million below accounting cost at the end of June, but investors kept buying anyway.According to SEC filings, Bitwise, Canary Capital, Franklin Templeton, 21Shares, and Grayscale recorded roughly $629.9 million in primary-market share creations against $309.1 million in redemptions during the first half of the year.That left capital activity positive by about $320.8 million even as the funds' combined XRP holdings sat 44.1% below their $1.7 billion accounting cost.The gap quantifies what Bloomberg ETF analyst James Seyffart called “surprisingly resilient” XRP ETF demand in an Aug. 31 post, where he put cumulative net inflows across the asset class at $1.8 billion.Five-fund XRP ETF snapshotAmountXRP accounting cost at June 30$1.693BXRP fair value at June 30$947.3MGap vs accounting cost-$746.1MPercent below cost-44.1%H1 share creations$629.9MH1 redemptions$309.1MNet capital activity+$320.8MWhy anyone would buy into a position already underwaterFair value across the sample of five funds totaled $947.3 million as of June 30, versus the nearly $1.7 billion those funds had originally paid.That decline alone would n...