Key Insights:
- XRP spot ETFs recorded a $40.8 million outflow on January 7, ending a 54-day inflow streak and reversing early-year gains.
- The 21Shares TOXR ETF saw the largest outflow, totaling $47.25 million, pushing its cumulative flow into negative territory.
- XRP’s price fell 14% in three days following the ETF shift, reflecting weakening institutional confidence.
On January 7, XRP spot exchange-traded funds (ETFs) saw a net outflow of $40.8 million, marking the first withdrawal since their launch. The exit ended a 54-day streak of uninterrupted inflows and reversed most of the gains recorded during the early part of 2026. According to data from SoSoValue, total inflows have now dropped to $1.20 billion.
Just two days earlier, on January 5, XRP ETFs posted their strongest daily inflow of the year at $46.1 million. However, that momentum shifted quickly, with the total assets under management for XRP ETFs falling from $1.65 billion to $1.53 billion. The abrupt shift suggests a significant change in institutional sentiment.
21Shares Product Sees Largest Redemption
Among the five approved XRP ETF products, the 21Shares TOXR fund led the pullback with $47.25 million in redemptions. This move pushed its cumulative flow into negative territory. Minor outflows also occurred in products by Bitwise, Canary, and Grayscale, totaling less than $7 million combined. The Franklin ETF remained unchanged.
By the close of trading on January 7, all five funds were priced below their net asset value (NAV). The average price fell by 4.03 percent. Simultaneously, daily traded value across XRP ETFs declined to $33.74 million, the lowest since mid-December.
XRP Price Drops Alongside ETF Outflows
The spot price of XRP reflected the shift in ETF demand. Between January 5 and January 8, XRP dropped from $2.42 to $2.08, registering a 14 percent decline on Binance. The drop in price followed closely after the large ETF redemptions and indicates broader market caution.
The latest ETF movement has introduced the first serious test of institutional appetite for XRP. While enthusiasm around ETF products had previously driven strong flows, the reversal suggests hesitancy among investors.
Substantial XRP Movement on Exchanges
Amid the ETF reversal, 22 million XRP tokens were moved off exchanges, raising attention among traders monitoring potential supply changes. However, no direct correlation has been confirmed with the ETF outflows.
