Whale's $310 Million XRP Stake Suffers as ETF Inflows Reverse, Sparking $11M Loss

XRP's spot ETF inflows ended their 54-day streak with a $40.8 million outflow on January 7, 2026. The outflow marked a shift in investor sentiment, with 21Shares TOXR leading the redemptions at $47.25 million. This withdrawal erased significant gains from early 2026 and brought cumulative inflows down to $1.2 billion.

The ETF outflows coincided with a 14% drop in XRP's price, which fell from $2.42 to $2.08 during the week. The price movement affected large investors, with one whale's $310 million position turning a profit into a potential loss exceeding $11 million. The decline highlights the volatility of ETF-linked assets and the sensitivity of institutional positions to market shifts.

Why Did This Happen?

The sudden outflows suggest a cooling of institutional demand for XRP. While ETF inflows had been steady since their launch, the withdrawal indicates investor caution. WisdomTree, one of the major players in the XRP ETF market, withdrew its application on January 6, adding to the uncertainty. The firm cited market saturation as a likely reason for the decision.

Competition in the XRP ETF space is already consolidated among early entrants. WisdomTree's move reflects a strategic shift as it appears too late to capture significant market share.

How Did Markets React?

The outflows coincided with a 6% drop in XRP's price on January 6, following WisdomTree's withdrawal. The price decline continued into the following days, reaching as low as $2.08 on Binance. The drop also affected broader market sentiment, with traders questioning whether the momentum seen in early 2026 had peaked.

Market participants are now closely monitoring whether the outflows are a short-term correction or a long-term shift. Some analysts point to consolidation patterns in 2017, suggesting a similar structure could lead to a breakout phase. However, any further outflows could signal broader investor skepticism about XRP's future performance.

What Are Analysts Watching Next?

Regulatory clarity and institutional adoption remain key factors for XRP. Ripple's legal resolution in August 2025 removed uncertainty, allowing banks and custodians to engage more freely. Analysts are now watching whether this clarity continues to support XRP's growth in 2026.

ETF flows are a critical indicator. If inflows resume and stabilize, it could signal renewed confidence. On the other hand, continued outflows may force a reevaluation of XRP's position in crypto portfolios.

Meanwhile, WisdomTree's withdrawal may have wider implications for the ETF market. If major players like BlackRock or Vanguard enter the space, it could disrupt existing market dynamics. This development is being closely watched by both investors and regulators.