XRP ETFs logged first outflows amid broad ETF selling as whale transfers rose, exchange balances fell, and sentiment weakened market.
US spot XRP exchange-traded funds (ETFs) posted their first day of net outflows since hitting the market. And effectively, this poor run halted a weeks-long run of steady inflows. Interestingly, this market drop came as patronage of ETF products reduced and the broader market flashed cooling signs. But even so, XRP-linked investment products remain among the strongest-performing in the ETF market.
XRP ETFs Face Initial Pullback as Bitcoin and Ether Funds Also See Outflows
Data from SoSoValue shows that around $40.8 million left US spot XRP ETFs on Wednesday. The move marked the first daily reversal since the funds began gathering assets in mid-November 2025. Until then, XRP ETFs had recorded uninterrupted inflows, supported by rising investor interest and positive sentiment around the token.
Image Source: SoSoValue
Despite the red day, XRP ETFs entered the week on solid footing. Consecutive inflows earlier in the year had pushed cumulative net inflows to about $1.2 billion. Total net assets across the products remain above $1.5 billion, keeping XRP ETFs among the largest and most resilient crypto exchange-traded products currently trading in the US.
Selling pressure was not limited to XRP-linked funds. Figures from Farside Investors show that spot Bitcoin ETFs recorded $486 million in net outflows on Wednesday, their largest single-day withdrawal since November.
Spot Ether ETFs also turned negative, posting roughly $98 million in investment exits. The synchronized move points to broader risk reduction rather than XRP-specific weakness.
In recent weeks, market participants have shown strong interest in XRP-linked investment products. Total net assets crossed the $1.5 billion mark, helped by familiarity with the token and its long market history.
Image Source: XRP ETF Tracker
Last month, CF Benchmarks CEO Sui Chung said XRP’s long track record made it easier for traditional investors to gain comfort with the product. That narrative carried through December, when spot XRP ETFs logged a 29-day inflow streak, even as other crypto ETFs faced month-end withdrawals tied to portfolio repositioning.
Whale Activity Rises as Price Pulls Back Despite Strong Start to the Year
XRP has been on a strong run this new year, ranked among the leading digital assets in performance. But analysts still warn that in a volatile market, even a strong outing does not guarantee future growth.
For instance, on-chain data indicates a shift in activity that aligns with price movements. Large transfers on the XRP Ledger picked up as the asset’s price pulled back.
As per Santiment, transactions exceeding $100,000 touched a three-month peak. Daily whale-sized jumped to an intraday high of 2,802, which is its highest level since October. Generally, such periods often precede higher volatility, as large holders position for price swings.
At the same time, exchange data points to reduced immediate selling pressure. XRP balances on Binance fell to about 2.6 billion tokens, the lowest level since January 2024. By late 2025, the exchange held roughly 3.25 billion XRP. The decline suggests ongoing withdrawals to private wallets, a pattern more often associated with custody than with near-term selling.
Bearish Sentiment Persists as XRP Whale Exchange Flows Trend Lower
Deposits from large holders to Binance have trended lower since mid-December. In November and early December, whales made up more than 70% of total inflows. That share has since dropped to around 60%, while retail activity has stayed steady. Historically, a smaller whale share in deposits tends to ease short-term sell pressure.
At the time of writing, XRP is exchanging hands at $2.07 after a 7.5% intraday drop. Prices touched $2.40 earlier in the week before yielding to a broader market pullback. For now, the market sentiment is bearish, with the Fear & Greed pointing to prevailing fear.
Image by Miloslav Hamřík from Pixabay