Whales Are Swimming Above Water: XRP ETFs Experience Their First Outflows!

Oh, dear! It seems the XRP ETFs have taken their first wobbly steps into the world of outflows, amidst a flurry of whale activity and a rather lackluster market sentiment.

Our dear friends in the realm of US spot XRP exchange-traded funds (ETFs) have sadly recorded their inaugural day of net outflows since their grand debut. What a tragedy! This unfortunate event halted what had been a delightful string of steady inflows, which, like a good English breakfast, was quite satisfactory until it wasn’t. Interestingly enough, this market dip coincides with a dwindling enthusiasm for ETF products and a general cooling of the broader market. But fret not, for XRP-linked investment products still hold court among the best performers in the ETF ballpark! 🎩

XRP ETFs Encounter a Teaspoon of Trouble as Bitcoin and Ether Funds Also Join the Exodus

According to the esteemed number-crunchers at SoSoValue, a staggering $40.8 million took a leisurely leave from US spot XRP ETFs this past Wednesday. This marked the first daily reversal since these funds began their asset-gathering escapades in mid-November 2025. Until that fateful day, XRP ETFs had enjoyed uninterrupted inflows, fueled by rising investor interest-how quaint!-and a positively optimistic aura surrounding the token.

Image Source: SoSoValue

Despite this disheartening red day, our XRP ETFs bravely faced the week with some semblance of stability. Previous inflows earlier in the year had bolstered cumulative net inflows to a rather impressive $1.2 billion. Total net assets across these dapper products remain above $1.5 billion, ensuring XRP ETFs maintain their status as some of the largest and most stalwart crypto exchange-traded offerings currently gracing the US markets.

Alas, selling pressure was not confined solely to XRP-linked funds. Figures from Farside Investors reveal that our beloved spot Bitcoin ETFs suffered a hefty $486 million in net outflows on Wednesday-oh, the drama!-marking their most significant single-day withdrawal since November. And let’s not forget the spot Ether ETFs, which also succumbed to the tide, registering approximately $98 million in investment exits. Clearly, this synchronized retreat indicates a broader desire to batten down the hatches rather than any specific shortcomings of XRP. 🐋

In recent weeks, however, market participants have exhibited a rather robust appetite for XRP-linked investment products. Total net assets crossed the illustrious $1.5 billion mark, aided by the familiarity of the token and its long-standing presence in the market. How terribly reassuring!

Image Source: XRP ETF Tracker

Last month, the sagacious CEO of CF Benchmarks, Sui Chung, noted that XRP’s extensive history made it comforting for traditional investors to engage with this product. This narrative held sway throughout December, when spot XRP ETFs enjoyed a marvelous 29-day inflow streak, even as other crypto ETFs faced the chilling winds of month-end withdrawals connected to portfolio repositioning. Quite the tale of resilience!

Whale Activity Takes Center Stage as Prices Take a Breather Despite a Glorious Start to the Year

As the new year unfolds, XRP has been strutting its stuff, proudly positioned among the top digital assets in terms of performance. Yet, analysts caution us that in such a tumultuous marketplace, a stellar performance today does not guarantee future glory. Oh, the irony!

For instance, on-chain data suggests a curious shift in activity that corresponds to the price movements-how shocking! Large transfers on the XRP Ledger have surged as the asset’s price takes a temporary dip. According to the wise folks at Santiment, transactions exceeding $100,000 have reached a three-month peak, with daily whale-sized transactions jumping to an intraday high of 2,802-quite the bustling bee! 🐝 Such periods often herald greater volatility, as those large holders prepare for the inevitable price swings.

Simultaneously, exchange data indicates a reduction in immediate selling pressure. XRP balances on Binance have dipped to about 2.6 billion tokens, the lowest since January 2024-a rather alarming statistic. Just last year, the exchange had around 3.25 billion XRP. This decline hints at ongoing withdrawals to private wallets, a trend more commonly associated with custody than with imminent selling. A curious development indeed!

Bearish Sentiment Lingers Like an Uninvited Guest as XRP Whale Exchange Flows Trend Lower

Deposits from our illustrious large holders to Binance have been on a downward trajectory since mid-December. Back in November and early December, whales dominated more than 70% of total inflows, but that figure has since dwindled to around 60%, while retail activity remains a steadfast constant. Historically, such a dip in whale participation tends to alleviate short-term sell pressure. How very civilized!

At the time of penning this, XRP is exchanging hands at $2.07 after a rather disheartening 7.5% intraday drop. Prices had touched a lofty $2.40 earlier in the week before yielding to the broader market’s whims. For now, the market sentiment is decidedly bearish, with the Fear & Greed index indicating a prevailing sense of trepidation. Oh, what a world! 😱

Image by Miloslav Hamřík from Pixabay

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2026-01-08 21:03