U.S. spot XRP exchange-traded funds (ETFs) have recorded a net negative week, data from SoSoValue shows. Notably, this has happened for the first time since their highly anticipated debut,
The red-hot ETF products that the products saw $40.64 million net outflow in the span of seven days.
The funds still boast a cumulative net inflow of $1.23 billion and hold $1.36 billion in AUM.
Grayscale bleeds, Bitwise buys
The outflows were not uniform across issuers. The vast majority of the selling pressure came from Grayscale’s XRP Trust (GXRP). The product saw $55.39 million exit the fund in a single week.
At the same time, Bitwise managed to buck the trend. Its XRP ETF logged $8.69 million worth of inflows. However, this was not enough to offset the bleeding.
The cooling demand is certainly a harsh reality check for holders who viewed the ETFs as a guaranteed ticket to all-time highs.
The narrative was that Wall Street money would send the Ripple-linked token to record highs.
The debut of XRP ETFs was objectively successful in terms of volume and inflows. Yet, the price action has told a different story.
The token staged a rally to $2.40 in early January only to face a "devastating retrace" that has erased all year-to-date gains.
Now, with flows turning negative, it is not even clear if the token can hold the current level.
According to CoinGecko data, XRP is currently changing hands at $1.88.
Other ETFs
Data from SoSoValue for the trading week of Jan. 19–23 reveals that U.S. Spot Bitcoin ETFs experienced their second-largest weekly outflow in history. These products shed a staggering $1.328 billion.
Ethereum ETFs also faced a brutal week, recording $611 million in net outflows.
The combined exit of nearly $2 billion from the market’s two largest assets paints a rather grim picture of current institutional confidence.
Alex Dovbnya
Caroline Amosun
Arman Shirinyan