XRP Spot ETFs Bleed First Outflows; $41M Exit Ends 54-Day Streak
Institutional investors pull $40.8M from XRP ETFs, ending a 54-day inflow streak as the asset slides to $2.12.
The institutional honeymoon is over. For the first time since their November debut, U.S. Spot XRP ETFs posted net outflows of $40.8 million on Wednesday, snapping a nearly two-month accumulation streak. The reversal signals a sharp shift in sentiment as profit-taking hit the broader crypto complex.
Data from SoSoValue confirms the exit was driven almost entirely by the 21Shares XRP ETF (TOXR), which saw $47.25 million in redemptions. While Bitwise and Canary Capital managed minor inflows ($2.44M and $2.32M respectively), they failed to offset the selling pressure. This marks the first red day after 36 consecutive sessions of inflows that had vacuumed up over $1.2 billion in assets.
Price Action & Market Context
The reaction was immediate. XRP surrendered the $2.20 level, sliding to $2.12 (-4.8%) as volume flagged. The token had rallied 30% in early 2026, touching $2.42, but the ETF reversal has forced a retest of lower support zones.
The euphoria surrounding ETFs is still going strong on paper, but the momentum has actually broken.
This liquidity drain isn’t isolated. Bitcoin spot ETFs also hemorrhaged $486 million on Wednesday, the largest single-day outflow since November, dragging BTC below $91,000. Institutional allocators appear to be de-risking ahead of Q1 regulatory hurdles, with the 2026 midterms casting a long shadow over legislative progress.
The Institutional Pivot
The divergence is telling. While XRP whale activity on the ledger hit a three-month high (2,802 large transactions), ETF investors are heading for the exit. This splits the narrative: on-chain accumulation versus traditional finance distribution. If outflows persist through Friday, expect market makers to widen spreads further, complicating the path back to $2.40.
