XRP ETF Hype Diminishes as WisdomTree Withdraws Application, Investors Turn to Remittix for 200% Gains

WisdomTree, a New York-based financial firm managing over $113 billion in assets, has withdrawn its S-1 registration for a spot XRP ETF, citing a decision not to proceed at this time. The move came amid a broader surge in XRP ETF inflows, with the five approved US-based XRP ETFs collectively recording over $1.25 billion in inflows since the start of 2026. No shares were sold under the registration.

XRP's price dropped roughly 5% following the withdrawal announcement. The token had gained momentum at the start of the year, forming a defined base between $1.77 and $1.95, before surging to $2.42. The recent pullback brought XRP down to $2.20 on January 8.

The first XRP ETF inflow-to-outflow reversal occurred on January 7, when a net $40.8 million was redeemed from the five approved XRP ETFs. This marked the first outflow since the ETFs began trading in November 2025. The 21Shares TOXR product led the outflows with $47.25 million in redemptions.

Why Did This Happen?

WisdomTree's decision to withdraw its XRP ETF application has sparked speculation about its reasoning. Some market observers suggest it may have been a strategic move in anticipation of larger asset managers like BlackRock entering the XRP ETF space. This so-called "clearing the deck" strategy is used by smaller firms when they anticipate a larger competitor's entrance into the market.

The move also coincides with the broader trend of market saturation, as other XRP ETFs have already captured significant market share. For example, Franklin Templeton's XRPZ ETF alone added $7.35 million in inflows on January 6.

How Did Markets React?

Following the withdrawal announcement, XRP's price dropped to $2.20, wiping out about $5 billion in market capitalization. Analysts noted that support levels around $2.05 to $2.10 would be key for sustaining a rebound. Resistance levels near $2.33 to $2.35 could determine the next breakout toward $2.64 or potentially $3.

The price decline was not limited to the spot market. XRP ETFs saw a sharp drop in value, with all five approved products finishing the day below their net asset value. The overall ETF market capitalization dropped from $1.65 billion to $1.53 billion.

What Are Analysts Watching Next?

Analysts are closely monitoring whether the recent outflows and price drop will be sustained or if the market will rebound. Some market watchers note that the current price patterns resemble those of 2017, where XRP formed a falling wedge structure before breaking out to a new high.

The launch of the Remittix platform on February 9 is also attracting investor attention. The platform is designed to provide a comprehensive crypto payments ecosystem, with wallet distribution already live on iOS and Android in progress. Remittix aims to integrate crypto-to-fiat functionality and support a broader payments infrastructure as the platform scales.

The Altcoin Season Index has reached 40%, signaling that blue-chip altcoins like XRP and Solana (SOL) could soon outperform Bitcoin. This index suggests that altcoins are undergoing a stabilization phase while Bitcoin retains potential for further downside.

Mutuum Finance, a DeFi lending and borrowing platform, has also been gaining traction ahead of its V1 protocol launch. The project has raised nearly $20 million through its presale, with 18,750 holders participating across seven phases. The project plans to launch its protocol on the Sepolia testnet before finalizing the mainnet deployment.

The broader crypto market has also seen a rise in institutional participation, with platforms like Toobit enhancing their trading features to meet growing demand. The exchange has introduced a suite of improvements to support its expanding user base, which is expected to reach 1 billion by 2026.

Despite the recent pullback, XRP remains a key asset in the crypto ecosystem, supported by its use in Ripple's expanding services, including GTreasury's acquisition of Solvexia and the launch of spot prime brokerage services for institutional clients.

The SEC is still reviewing applications for additional XRP ETFs from Grayscale, CoinShares, and others, with no approvals yet. These pending applications may influence the market dynamic in the coming months.