Net assets in the U.S. XRP spot ETF market have climbed back above $1 billion. The rebound was driven more by a revaluation of underlying assets on XRP's price recovery than by large new inflows, an analysis said.

On July 7 local time, blockchain media outlet U.Today said total assets under management across five U.S. XRP spot ETFs were tallied at $1.05 billion. Based on Sosovalue, the XRP ETF market again surpassed $1 billion, seen as a psychological threshold.

The immediate backdrop to the recovery is a rise in XRP's price. XRP has gained 10.5 percent over the past week and settled around $1.15. As the price rebounded from a drop to the $1 level in June, the value of XRP held by ETFs also rose.

An ETF's net assets are directly linked to the price of its underlying assets. As a result, when XRP rises, assets under management can increase even without large separate inflows. The original report interpreted the return above $1 billion as a revaluation effect driven by the price rebound rather than new buying demand.

By product, the Bitwise XRP ETF was the largest at $330.84 million. Canary's XRPC followed at $265.3 million, with Franklin Templeton's XRPZ at $261.68 million.

Actual inflows were limited. Net inflows into the five funds totaled $17.19 million during the reporting period. Still, net inflows extended for a ninth straight week, and cumulative inflows since launch rose to $1.49 billion.

Institutional investors remain cautious. That is because regulatory uncertainty remains over XRP's legal status. The market views the delay of a final vote on the U.S. Clarity Act, expected to clarify XRP's commodity status, until late July or August as a factor to watch.

As a result, the current XRP ETF market is closer to maintaining existing positions than drawing aggressive inflows. The return above the $1 billion level is positive, but the fact that the driver was XRP's price rebound rather than an expansion of new institutional money remains a variable.

Ultimately, the direction of the XRP spot ETF market will depend on two things. Key points to watch will be whether XRP's price gains can continue and whether the U.S. regulatory timetable proceeds in a way that actually boosts market confidence.