XRP ETFs See $40.8M Outflow, Breaking a 54-Day Inflow Streak

 

XRP Spot ETFs See First Major Outflow After 54-Day Inflow Streak, Market Tests Investor Conviction

U.S. spot XRP exchange-traded funds have recorded their first meaningful pullback after nearly two months of uninterrupted inflows, marking a notable shift in short-term market behavior. On January 7, XRP spot ETFs posted a combined net outflow of $40.8 million, bringing an end to a 54-day streak of consistent buying pressure. The update was initially shared by RippleXity on X and quickly circulated across crypto market circles.

The reversal came as XRP’s price also moved lower. Over a three-day period, the token fell roughly 14 percent, sliding from near $2.40 to around $2.10. While the price move unsettled some traders, others viewed it as a healthy pause following a strong rally.

The development has reignited debate over whether XRP’s recent momentum is cooling or simply resetting before its next move.

Breaking Down the ETF Outflow

Data shows that the bulk of selling pressure originated from the 21Shares XRP ETF (TOXR). Reports indicate that the fund alone accounted for approximately $47 million in redemptions on January 7, more than offsetting inflows seen elsewhere in the market.

Smaller outflows were also recorded across other XRP-linked products, including those issued by Bitwise, Canary Capital, and Grayscale. In contrast, the XRP fund managed by Franklin Templeton showed no significant movement during the same session, suggesting that selling was not uniform across all issuers.

Following the outflows, total assets under management across U.S. spot XRP ETFs declined to roughly $1.53 billion.

Profit-Taking After a Strong Rally

Many market participants believe the outflow was driven primarily by profit-taking rather than a broader shift in sentiment. XRP had just completed a sharp rally, gaining nearly 25 percent earlier in the month and briefly touching $2.40. After such a move, short-term investors often look to lock in gains.

From a technical perspective, a pullback was widely anticipated. XRP had outperformed both Bitcoin and Ethereum over the same period, increasing the likelihood of consolidation as momentum traders stepped aside.

This behavior aligns with historical ETF trading patterns, where strong inflow streaks are often followed by brief periods of outflows as positions are rebalanced.

Source: Xpost

Inflows Resume Within 24 Hours

Notably, selling pressure did not persist. According to data from SoSoValue, XRP spot ETFs returned to net inflows just one day later. On January 8, the sector recorded $8.72 million in fresh inflows, signaling that investor interest remained intact.

The Bitwise XRP ETF led the rebound, attracting $4.51 million in a single session. With this addition, its cumulative inflows since launch have climbed to nearly $292 million. Grayscale’s GXRP product followed with $2.89 million in inflows, while Canary Capital’s XRPC fund added close to $1 million.

As of January 8, total net assets across all XRP spot ETFs stood at approximately $1.49 billion, representing about 1.16 percent of XRP’s total market capitalization.

XRP Price Shows Signs of Stability

Despite the brief wave of ETF selling, XRP’s price action has remained relatively resilient. At the time of writing, XRP is trading near $2.10, holding above a level many traders view as a key psychological and technical support zone.

Earlier in the month, XRP’s rally was fueled by a combination of factors, including strong ETF demand, increased whale activity, and renewed discussion around real-world use cases. At its peak, the token reached $2.40 before entering a cooling phase.

Even after the pullback, XRP remains one of the largest cryptocurrencies by market capitalization, firmly positioned within the top tier of digital assets.

Diverging Investor Reactions

The ETF outflow sparked mixed reactions across social media and trading desks. Some investors dismissed the $40.8 million outflow as routine market noise, arguing that it represents a small fraction of total ETF assets.

Others pointed specifically to 21Shares, suggesting that the fund may have accumulated XRP aggressively during the rally and was forced to reduce exposure during the pullback. While such claims remain speculative, they highlight how closely ETF flows are scrutinized as sentiment indicators.

Still, longer-term data paints a more constructive picture. Since their launch, U.S. spot XRP ETFs have attracted more than $1.21 billion in cumulative inflows, underscoring sustained demand for regulated XRP exposure.

Why ETF Flows Matter for XRP

Spot ETFs have become one of the most influential drivers of crypto market dynamics. They provide institutional and retail investors with a regulated pathway to gain exposure without directly holding the underlying asset.

For XRP, ETF flows serve as a proxy for broader market confidence. Extended inflow streaks often coincide with rising prices, while outflows can signal caution or consolidation.

However, short-term ETF movements do not always translate into long-term trends. Markets frequently experience pauses even within broader uptrends, especially after periods of rapid appreciation.

The Bigger Picture for XRP

While the 54-day inflow streak has ended, interest in XRP ETFs remains far from diminished. Multiple funds continue to see fresh capital, and total assets under management remain historically elevated.

As long as XRP holds above critical support levels and ETF participation remains active, many analysts believe the broader bullish structure remains intact. Attention is now shifting to whether XRP can reclaim the $2.40 level or whether further consolidation lies ahead.

For now, traders are watching ETF flows closely, aware that they often provide early clues about the next major move.

Conclusion

The first major outflow from U.S. spot XRP ETFs after weeks of steady inflows has introduced a note of caution into the market. However, the rapid return of inflows suggests that investor interest remains resilient.

Rather than signaling a trend reversal, the data points toward a market taking a breather after a strong rally. With XRP holding near $2.10 and ETF participation still robust, the coming days may prove decisive in determining whether momentum can rebuild.

As ETF flows, price action, and broader market conditions continue to evolve, XRP remains firmly in focus as one of the most closely watched assets in the crypto market.

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