[DigitalToday reporter Yoonseo Lee (이윤서)] XRP traded at about 25 percent below an estimated purchase price for spot exchange-traded funds (ETFs), but investor selling appeared limited.

On Oct. 29 (local time), blockchain outlet CryptoSlate reported that data firm XRP Insights estimated the average XRP purchase price at about $1.71. XRP was trading at about $1.29, about 25 percent below the estimate.

By contrast, the combined net holdings decline for funds with tracked flows totalled about 2.96 million XRP from Oct. 26 to 28. Comparing balances for the same fund group on Oct. 23 and 28, holdings fell about 0.26 percent, with most previously held positions maintained. The tally excluded Grayscale’s GXRP.

The decline was concentrated in Bitwise products. Holdings in that fund fell from about 416.61 million XRP on Oct. 23 to about 413.82 million XRP on Oct. 26 and stayed at that level through Oct. 28. Holdings at Franklin Templeton and 21Shares were unchanged over three trading days. Total net holdings for tracked funds rose by about 174,140 XRP on Oct. 28, partially offsetting the earlier decline.

Even so, there are limits to interpreting the gap between the estimated purchase price and the current price as the actual loss rate for ETF investors. The estimate is calculated based on changes in fund holdings and a reference price, and does not reflect individual investors’ purchase timing, transaction price or fees. New creations and redemptions may have offset each other, making it difficult to conclude there was almost no selling or redemption solely because the net holdings decline was small.

The market sees whether XRP holdings and shares outstanding at multiple asset managers continue to rise as a key gauge of demand recovery. If holdings and shares outstanding fall together and redemptions spread across funds, some analysts say concerns about investor exits could grow.