Since their introduction in November, spot XRP ETFs have charted a distinct course compared to Bitcoin and Ethereum ETFs.
Initially, these funds consistently attracted net inflows without any recorded outflows. However, this trend has recently shifted as US-based XRP spot ETFs experienced net outflows for the very first time since their debut.
Data from SoSoValue reveals that after 36 consecutive days of positive inflows, US spot XRP ETFs registered their inaugural net outflow.
On January 7th alone, five different XRP funds collectively saw $40.8 million withdrawn.
The most significant withdrawal occurred from the 21Shares TOXR fund with an exit totaling $47.25 million. Meanwhile, other ETFs such as Canary, Bitwise, and Grayscale reported modest net inflows around $2 million each.
Rachael Lucas, an analyst at BTC Markets speaking to The Block, emphasized that while this initial outflow marks a notable shift in momentum, it represents less than 3% of total cumulative inflows—indicating the movement isn’t yet substantial on a large scale.
“The emergence of net outflows in XRP ETFs is certainly noteworthy. Nevertheless, these withdrawals amount to under three percent of overall inflows, so the impact remains limited.”
Lucas attributed this pullback primarily to profit-taking following a rapid price increase—from $1.80 up to $2.40 within one week—which coincided with broader market corrections across cryptocurrencies.
She further highlighted that exchange reserves for XRP are currently at historic lows even as trading volumes stay elevated. Various on-chain metrics continue to suggest bullish momentum beneath the surface.
The analyst concluded by suggesting that if ETF capital flows pick up again soon, XRP could potentially challenge its previous resistance near the $3 mark once more.
“With exchange reserves at record lows and sustained high trading activity combined with supportive on-chain signals, if investment returns into these funds accelerate, XRP may well retest levels around three dollars.”
This content does not constitute financial advice.