Streak Snapped: XRP ETF Outflows Mark a Significant Shift
A historic run has come to a pause. For the first time since their launch in mid-November, U.S. spot XRP ETF outflows for the first time, shedding $40.7 million on January 7. This ends an impressive 6-7 week streak of relentless accumulation that saw total inflows smash past the $1.2 billion mark. The shift signals a broader cooldown in the crypto ETF market, yet the underlying structural demand for XRP remains remarkably strong.

This single-day reversal occurred amid a wider market pullback. Major Bitcoin and Ethereum ETFs also saw significant redemptions on the same day, suggesting a sector-wide risk-off move rather than an XRP-specific issue. Notably, the outflow was concentrated in a single fund (21Shares), while others like Bitwise and Grayscale saw flat or positive flows, indicating this is likely profit-taking and rotation, not a mass exodus.
Context and Resilience Amid XRP ETF Outflows
It’s crucial to view these XRP ETF outflows in context. Despite the one-day pullback, total net assets for XRP ETFs remain robust at over $1.5 billion. This resilience highlights that the institutional foundation built over the past two months is solid. Furthermore, while the giants bled, smaller crypto ETFs—particularly those for Solana—continued to see inflows, showing capital is simply moving within the digital asset space.

The price action reflects this sentiment shift. After a powerful 13% weekly surge that pushed XRP to $2.40, the token has corrected roughly 6.90%, now trading near $2.08. This is a standard, healthy retracement following a parabolic move, especially when the broader market takes a breather.

My Thoughts
This is a breather, not a breakdown. One day of outflows after seven weeks of massive inflows is a natural market rhythm. It likely represents short-term traders booking profits after a strong run, not a reversal of institutional strategy. The sustained total AUM proves the foundational capital is sticky. For long-term investors, this pullback—especially if it continues—could present a strategic entry point before the next wave of adoption, fueled by the very ETFs that are now experiencing a short-term flush.

















