Funds tracking XRP posted their first net outflow on Jan. 7, 2026, breaking a steady inflow streak that had held since their mid-November 2025 launch.
Data from SoSoValue shows investors pulled roughly $41 million from XRP ETFs on the day, marking a notable shift in short-term sentiment after a strong start to the year.
Try Our Recommended Crypto Exchanges
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
Before this first outflow day, spot XRP ETFs had a near-perfect run, pulling in roughly $1.6 billion over their first two months on the market.
The reversal came after a strong start to 2026, when the funds continued to attract fresh capital and even crossed major milestones, including more than $1.3 billion in cumulative inflows just days earlier.
In context, the outflow was relatively small.
The roughly $41 million withdrawal represented less than 3% of the total inflows accumulated since the launch.
Most of the pressure came from a single product, 21Shares’ TOXR, which saw about $47 million redeemed.
XRP ETF outflows. Source: SoSoValue.
Other funds, including offerings from Canary Capital, Bitwise, and Grayscale, still logged modest inflows that helped cushion the overall impact.
Market watchers largely see the move as routine profit-taking rather than a shift in longer-term sentiment.
XRP surged about 25% in the first week of January, climbing to around $2.40, prompting some investors to lock in gains.
The latest outflow occurred alongside a broader pullback in the cryptocurrency market, where Bitcoin (BTC) and Ethereum (ETH) ETFs also experienced significant outflows on the same day.
Spot Bitcoin ETFs recorded hundreds of millions in outflows, and Ethereum saw around $98 million in outflows.
XRP ETFs Still Strong Despite First Outflow
Despite this initial outflow, underlying indicators suggest that investor interest will continue to be strong.
On-chain data indicates positive signals, including historically low XRP reserves on exchanges, increased whale transactions, and high network activity.
These suggest many holders are moving tokens to long-term storage rather than selling aggressively.
The ETFs themselves still hold a substantial amount of XRP, locking up hundreds of millions of tokens, and have demonstrated remarkable demand since their launch, outperforming many expectations for an altcoin product.
A single day of outflows after weeks of uninterrupted gains is ordinary in ETF markets, especially following a price surge.
Stepping back, the bigger picture still points to strong institutional interest.
XRP ETFs have consistently attracted capital since launch, even during periods when Bitcoin and Ethereum products struggled to hold onto inflows late last year.
If demand picks up again, as several analysts expect, the brief outflow may end up looking more like a routine breather than a turning point.
In that scenario, a renewed push toward higher price levels, including a possible retest near $3, would not be surprising.
Beyond short-term flows, sentiment around XRP continues to draw support from broader developments, including regulatory clarity and Ripple’s ongoing efforts to expand its global payments network.
Together, those factors suggest that institutional interest has cooled only briefly, not disappeared.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
