US spot XRP ETFs recorded their first-ever net outflow on Wednesday, January 7, 2026, breaking a 36-day streak of continuous inflows since their launch in Q4 2025. The shift immediately raised a critical question for the market: Does this change in ETF flow direction signal a deeper downside for XRP’s price, or is it a short-term reset within a still-intact structure? Recent price action and broader market context suggest the answer is more nuanced than a simple bearish continuation.
First Ever Red Day For XRP ETFs
The net outflow for XRP ETFs totaled roughly $40.8 million, driven entirely by a $47.25 million redemption from 21Shares’ TOXR, as Canary Capital, Bitwise, Franklin Templeton, and 21Shares all recorded notable outflows during the period. This heavy selling pressure was partially offset by limited inflows into select products, with Canary’s XRPC attracting $2.32 million, while Grayscale’s GXRP stood out as the only fund to post positive flows, adding about 0.13% or roughly $1.69 million, according to SoSoValue data.
Despite this single day of outflows, XRP ETFs continue to hold significant assets, roughly $1.53 billion, just over 1% of the cryptocurrency’s overall market capitalization. The cumulative fund flow since launch remains strongly positive, indicating institutional demand has not disappeared.
Following the red ETF print, XRP’s price declined around 7%, slipping below $2.10 after failing to overcome resistance near $2.26. This move occurred within a broader short-term market pullback and did not immediately unwind earlier gains from sustained ETF accumulation. Short-term price response is more likely tied to traders reacting to ETF data and simultaneous weakness in broader crypto markets, rather than an isolated loss of confidence in the altcoin itself.
Broader ETF Outflows Reflect Market-Wide Risk Rotation
The first red day for XRP ETFs coincided with heavy outflows across other major crypto ETFs, highlighting a broader risk-off shift in institutional positioning amid ongoing regulatory recalibration. This came as WisdomTree quietly exited the spot XRP ETF race, withdrawing its SEC filing without any shares issued. Spot Bitcoin ETFs simultaneously recorded withdrawals totaling roughly $486 million, marking one of the largest single-day outflow prints in early 2026.
Spot Ether ETFs also turned negative, with about $99 million in net outflows reported, representing the first net exit day for ETH products this year. Together, these synchronized moves suggest the pressure was not isolated to XRP instruments, but part of a wider rotation across crypto-linked funds as capital reassessed exposure.
Such market-wide ETF weakness tends to amplify short-term price volatility and drive correlated moves across digital asset prices. While prior inflows still provide a degree of support, the combination of fund redemptions and issuers stepping back from new launches raises questions about whether this session marks a temporary pause or the start of a more cautious phase for regulated crypto exposure.
Featured image created with Dall.E, chart from Tradingview.com
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