XRP ETFs Post First Day of Outflows Since November Launch

US spot XRP exchange-traded funds (ETFs) recorded their first net outflow day since launch on January 7, 2026, with about $40.8 million exiting the products. This marked a reversal after weeks of uninterrupted inflows since mid-November 2025. The outflow ended a streak of positive flows, which had pushed the funds' cumulative net inflows to $1.2 billion.

The outflow day coincided with broader weakness in the crypto-linked ETF market. Spot Bitcoin ETFs saw $486 million in outflows on the same day, their largest net outflow since November. Spot Ether ETFs also recorded a negative $98 million in net outflows.

Smaller crypto ETFs showed mixed performance. Spot Solana ETFs continued to attract inflows, while Chainlink and Dogecoin ETFs experienced flat or minimal movement.

Why Did This Happen?

The outflow from XRP ETFs was led by 21Shares' TOXR fund, which saw $47.25 million in redemptions. This was the largest single ETF outflow among XRP products on January 7. Other XRP ETFs, such as those from Bitwise, Canary, and Grayscale, saw smaller outflows or inflows.

Market analysts noted that the redemptions coincided with a 7% drop in XRP's price, which fell from a daily high of $2.319 to $2.149. The price movement reinforced concerns over short-term market sentiment for the cryptocurrency.

How Did Markets Respond?

The outflow from XRP ETFs coincided with broader volatility in the ETF space. Bitcoin ETFs, which had seen strong inflows at the start of 2026, reversed course, with outflows reaching $243 million on January 6. Ethereum ETFs followed a similar pattern, with $98 million in net outflows on January 7. This trend suggests a shift in investor sentiment from aggressive accumulation to cautious reassessment.

Meanwhile, Franklin Templeton's XRPZ ETF saw $7.35 million in inflows on January 6, highlighting continued demand for XRP exposure despite the broader outflow trend.

What Are Analysts Watching Next?

Despite the first net outflow for XRP ETFs, the total net assets across all XRP ETFs still hover above $1.5 billion. Analysts remain optimistic about the token's long-term potential, with some predicting price targets of $5 or even $20, depending on market conditions and institutional adoption.

The broader crypto ETF landscape is also under scrutiny. WisdomTree recently withdrew its XRP ETF application with the SEC, citing market saturation and strategic timing concerns. The move raised questions about whether the firm is preparing for competition from larger players such as BlackRock.

Investors are also watching regulatory developments. The SEC has yet to approve additional XRP ETF applications from firms such as Grayscale and Bitwise. Any regulatory updates could influence market dynamics and investor behavior in the near term.