XRP News Today: XRP ETF Inflows Surge to $1.1B Amid Evernorth's $220M Losses

Evernorth Holdings, a treasury firm specializing in XRP, faces over $220 million in unrealized losses as the token's price declines. The firm acquired 389 million XRP tokens for $947 million, but current valuations show a significant drawdown. The losses reflect current market conditions rather than forced sales, with no large outbound transfers observed. XRP's price has fallen 16% in the last 30 days amid broader market corrections.

Despite the price drop, XRP spot ETFs continue to attract substantial inflows. Since their launch, these ETFs have drawn over $1.1 billion in net inflows, indicating strong institutional interest in the asset. On December 24 alone, ETFs added nearly $12 million, led by Franklin's XRP ETF.

The situation for Evernorth underscores the risks of concentrated treasury strategies. While large positions can amplify gains, they also increase exposure to market volatility. Analysts highlight the tension between long-term conviction and short-term volatility in crypto treasuries. Evernorth has not disclosed any changes to its strategy or hedging activities.

Why the Standoff Happened

Evernorth's treasury strategy was based on high-conviction accumulation of XRP, betting on the token's long-term potential. The firm made its largest XRP purchases between late October and late December 2025, capitalizing on a strong uptrend in the token's price. However, the market turned against the firm as XRP's price dropped from $2.60 to $1.80. What started as a $71 million unrealized gain quickly became a $220 million loss according to recent analysis.

The drawdown was not due to forced selling or operational issues but rather a natural result of price declines. On-chain data from CryptoQuant shows that Evernorth's position value has dropped significantly, with no signs of liquidation. The firm's losses reflect the classic risks of holding a large, volatile asset during a market downturn.

How Markets Reacted

XRP's decline has been broad and persistent, with the token trading below $2 for over a week. Institutional investors, including ETFs, have continued to accumulate XRP despite the price weakness. These ETFs now hold over $1.25 billion in XRP, indicating that some market participants see value in the token.

Retail and whale selling pressure has intensified, with capital flow indicators remaining negative since late November. This selling pressure has kept XRP's price vulnerable, as inflows from ETFs have not been enough to counter the outflows. The Accumulation/Distribution Money Flow (ADMF) also remains negative, reinforcing the dominance of sellers.

Despite these challenges, some analysts argue that XRP's long-term fundamentals remain intact. The token's role in cross-border payments and growing institutional adoption via ETFs suggest that its use case is expanding. The XRP Ledger has also hit milestones, including over 4 billion transactions, which could signal broader utility and adoption.

What Analysts Are Watching

Investors and analysts are closely monitoring Evernorth's XRP holdings for any signs of rebalancing or strategy changes. The firm's current position remains intact, and there are no disclosures of hedging or position reductions. Market observers will watch wallet activity for any moves that could indicate a shift in the firm's approach.

The broader market will also be watching whether XRP ETF inflows translate into price recovery. While ETFs have absorbed significant supply, they may not be enough to offset ongoing selling pressure from large holders. If XRP can reclaim $2 as support, it could signal a reversal in the bearish trend.

Risks to the outlook include further declines in XRP's price and potential regulatory changes that could affect institutional demand. The market is also sensitive to macroeconomic factors, including inflation and interest rate expectations. These factors can influence investor risk appetite and, in turn, impact XRP's price.