“In crypto, pauses are part of the causes,” said a digital assets analyst. “XRP ETF outflows point to healthy profit-taking, not fading confidence.”
U.S. spot XRP exchange-traded funds (ETFs) had their first net outflows since their inception in November 2025, with about $40.8 million running away the funds on January 7, capping an impressive inflow trend that had lasted for weeks.
The 21Shares XRP ETF (TOXR), which accounted for almost $47.25 million in net refunds on the day, was the main cause of the outflows, according to SoSoValue data, while other products, such as Bitwise’s XRP ETF, saw lesser inflows.
Despite this reversal, total assets under management for spot XRP ETFs are close to $1.5 billion, indicating ongoing institutional interest, and historical net inflows are still high at about $1.2 billion.
Following XRP’s huge rise earlier this year, increasing profit-taking in the cryptocurrency market linked with the decline in ETF flows. The outflows have been attributed by market analysts to investors locking in gains after a big price increase in early 2026.
This brief reversal reflects a larger trend of profit realisation in digital assets, even though XRP had surpassed major tokens in ETF demand.
Other significant cryptocurrency ETF products were also under pressure during the exodus, with spot Bitcoin ETFs reporting net withdrawals of roughly $486 million and Ethereum ETF flows becoming negative with over $98 million leaving on the same day.
Industry observers point out that the institutional demand for XRP is still strong despite the one-day redemptions, indicating that the withdrawals might be a temporary response rather than a structural change.
To determine whether inflows return and support XRP’s possible retest of higher price levels, it will be crucial to keep an eye on ETF flows.
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