Ripple Confirms 2025 Wins as XRP ETF Market Consolidates in 2026

XRP spot ETFs recorded their first daily outflow on January 7, 2026, with $40.8 million pulled from the five approved products, breaking a 54-day inflow streak. This marked a notable shift from the bullish start of the year and reduced cumulative inflows to $1.2 billion. The drop in inflows coincided with a 14% price decline for XRP, which fell from $2.42 to $2.08 during the early session on Binance according to trading data.

The outflow primarily affected the 21Shares TOXR product, which alone saw $47.25 million in redemptions, pushing its cumulative flow into the negative. Other funds like Bitwise, Canary, and Grayscale also saw smaller withdrawals, though Franklin recorded stable inflows. All funds closed below their NAV, signaling investor caution.

WisdomTree, a major asset manager, has officially withdrawn its application for a U.S. XRP ETF. The firm had filed an S-1 registration with the SEC in December 2024 but later chose to abandon the proposal. The move reflects the competitive and saturated landscape in the XRP ETF market, where early entrants like Bitwise and Grayscale already captured significant market share.

Why Did This Happen?

WisdomTree's decision to pull its XRP ETF application highlights the challenges of late market entry. The firm had already launched a physical XRP product in Europe but failed to gain a foothold in the U.S. despite entering the race in late 2024. This is a common issue in markets where early movers dominate, often leaving little room for new entrants to attract attention or inflows.

The broader XRP ETF landscape has seen consolidation, with the top funds capturing the majority of inflows. Canary Capital leads in assets under management, followed by Bitwise, Franklin Templeton, and Grayscale according to market analysis. This market concentration has left later entrants like WisdomTree and CoinShares with limited opportunities to differentiate their products.

How Did Markets React?

The first outflow in XRP ETF history triggered a drop in total ETF assets, reducing the value from $1.65 billion to $1.53 billion within a single day. The decline came just two days after a record $46.1 million inflow, highlighting the volatile nature of investor interest in the space. Daily traded value also fell to $33.74 million, the lowest since mid-December.

The shift in sentiment was mirrored in the spot price of XRP. After reaching a high of $2.42 on January 5, the price dropped to $2.08 by January 8, a 14% decline that reflects the impact of the ETF outflows. This price movement raises questions about whether the early enthusiasm for XRP ETFs has reached its peak.

What Are Analysts Watching Next?

Analysts are closely watching whether the recent outflow was an isolated event or a sign of shifting investor sentiment in the XRP space. If the trend continues, it could signal a broader reassessment of XRP's role in the digital asset portfolio. This could affect future ETF inflows and ripple through to broader market sentiment.

Market participants are also monitoring the actions of remaining ETF providers, such as Grayscale and Bitwise, to see if they will adjust their strategies in response to the current outflow. The next major test for XRP ETFs will be how they perform in the coming weeks as the market absorbs the recent developments and investor sentiment stabilizes.

Overall, the XRP ETF landscape remains dynamic. While the product has attracted $1.5 billion in net assets since its debut, the recent outflow suggests that investor enthusiasm is not immune to market corrections. As the product matures, the focus will shift to long-term inflow sustainability and whether XRP can maintain its position as a major digital asset ETF offering.