TLDR
- XRP ETFs experienced their first weekly net outflow since their market debut.
- A total of $40.64 million exited XRP ETF products over the course of one week.
- Grayscale’s XRP Trust accounted for the majority of the outflows with $55.39 million withdrawn.
- Bitwise recorded $8.69 million in inflows but this was not enough to offset overall losses.
- XRP’s price dropped to $1.88 after previously reaching $2.40 earlier in January.
U.S. spot XRP ETFs posted their first weekly net outflows since launch, registering a $40.64 million decline, according to SoSoValue. While cumulative net inflows still exceed $1.2 billion, the latest data reflects a reversal in institutional sentiment. ETF issuers experienced uneven results, with Grayscale’s XRP Trust absorbing most of the week’s losses.
Grayscale XRP Trust Sees Major Capital Exit
Grayscale’s XRP Trust (GXRP) led the selloff, recording $55.39 million in net outflows over the reported week. This single issuer accounted for more than the total net loss across all XRP ETFs. The selling pressure from Grayscale largely overshadowed gains from other funds.
Bitwise registered inflows of $8.69 million, suggesting varied market sentiment among ETF providers. However, Bitwise’s gains could not offset Grayscale’s losses, keeping the overall trend negative. The total assets under management (AUM) for all XRP ETFs now stand at $1.36 billion.
XRP ETFs launched with strong inflows, prompting optimism around long-term institutional adoption. While trading volumes had remained steady, the latest weekly reversal raises concerns among observers. The price of XRP fell to $1.88 during the same period, per CoinGecko.
XRP ETFs Fail to Sustain Momentum
Following their successful debut, XRP ETFs attracted broad interest from institutions and traders seeking exposure to Ripple’s token. Yet, the recent outflows signal that initial excitement may have faded under current market conditions. Investors expected ETF listings to drive sustained upward pressure on XRP.
XRP reached a local high of $2.40 earlier this month before reversing course sharply. This retreat erased all year-to-date gains for the digital asset. With funds now recording outflows, questions have emerged about XRP’s near-term price stability.
ETF demand plays a key role in supporting long-term asset prices, especially in highly speculative markets. As demand recedes, XRP’s short-term performance may continue to weaken. So far, no ETF issuer has publicly addressed the reasons behind the shifts in capital flows.
Bitcoin and Ethereum ETFs Also Post Losses
According to SoSoValue, Bitcoin ETFs reported $1.328 billion in net outflows during the same trading week. This marked the second-largest weekly capital withdrawal for Bitcoin ETFs in their history. Ethereum ETFs followed closely, shedding $611 million.
Together, Bitcoin and Ethereum ETFs saw a combined $1.939 billion exit, reflecting broad institutional disinterest. These withdrawals come at a time of declining market confidence in digital asset products. The trend affects all major cryptocurrencies, including XRP.
The post XRP ETFs Record First Weekly Outflow Since Launch as Demand Slows appeared first on CoinCentral.
