XRP ETF Bloodbath: $40M Outflows Rattle Markets

The XRP ETF trade has lost its initial attraction. Institutional investors who showed interest in the asset now withdraw their support. The present situation presents uncertainty about future price developments which were previously marketed as a guaranteed path to increased value.

The U.S. spot XRP exchange-traded funds (ETFs) experienced their first week of net negative performance since their introduction.

According to SoSoValue data, the products saw $40.64 million in net outflows over seven days. The situation has undergone a transformation which indicates that public opinion has changed. The initial excitement which followed their introduction has diminished, and the market now recognizes this change.

XRP exchange-traded funds (ETFs) demonstrate their ability to maintain value despite experiencing a setback. The company manages $1.36 billion in assets while having received total investor contributions of $1.23 billion. The current situation needs to show progress. The current situation has reached its highest point for present time.

Also Read: XRP ETF Inflows Rise as Analysts Reassess Long-Term Structure

XRP ETF Outflows Expose Cracks in Narrative

The distribution of selling pressure did not occur in a uniform manner. Grayscale’s XRP Trust (GXRP) absorbed the bulk of the damage. The fund lost $55.39 million within one week, which served as the primary cause of the market decline.

Bitwise moved in the opposite direction. Its XRP ETF attracted $8.69 million in inflows, bucking the broader trend. The situation continued to deteriorate despite that effort.

This moment serves as a reality check for most holders. The dominant belief consisted of one straightforward idea. Wall Street money would arrive, liquidity would surge, and prices would follow. Reality has been less kind.

XRP ETF Weakness Mirrors Broader Crypto Retreat

The XRP ETF launch achieved success according to most performance indicators. The market experienced high trading activity. The initial financial investments created a strong positive impression. Price movements failed to develop as expected.

The price of XRP reached $2.40 during early January but then experienced a fast decline which wiped out all of its yearly earnings. According to CoinGecko the current value of the token stands at approximately $1.88.

The Negative cash flows create a major issue which needs resolution. Will XRP maintain its present values until it receives fresh institutional purchasing activity?

The answer depends on how the ETF system operates across various markets. Bitcoin ETFs experienced their second-highest weekly outflow in history when $1.328 billion exited the market. Ethereum ETFs experienced a net exit of $611 million. The two largest market assets experienced a capital outflow of almost $2 billion within one week.

Institutional investors now show less trust in the market. The protective status of XRP ETFs against market conditions has ended.

Also Read: XRP ETF Inflows Fuel Bullish Momentum as Price Eyes $3.65 Resistance