XRP ETFs Record First Outflow Amid Rising Crypto Selling Pressure
Highlights:
- U.S. spot XRP ETFs saw their first outflow of $40.8 million on January 8.
- 21Shares XRP ETF led with $47.25 million redeemed, ending the long inflow streak.
- XRP price dropped to $2.13 after Ripple transferred 68,110,611 XRP to Binance.
The U.S.-listed spot XRP ETFs recorded their first net outflow of $40.8 million on January 8, SoSoValue reported. This ended a 36-day streak of inflows that had added over $1.25 billion. The shift shows a sudden change in investor activity. The main driver of this outflow was the 21Shares XRP ETF. It alone saw $47.25 million redeemed. This is similar to spot Solana ETFs, where early outflows from 21Shares’ TSOL also broke inflow streaks.
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Other funds had mixed results. Bitwise added $2.44 million, Canary Capital’s XRPC gained $2.32 million, and Grayscale’s GXRP purchased $1.69 million in XRP. Franklin’s XRPZ did not report any inflows. Despite these changes, total assets under management for spot XRP ETFs remain near $1.6 billion.
According to SoSoValue, on Jan. 7 (ET), U.S. spot Bitcoin ETFs recorded total net outflows of $486 million. Spot Ethereum ETFs saw net outflows of $98.45 million, XRP spot ETFs recorded net outflows of $40.80 million, while Solana spot ETFs posted net inflows of $1.97 million.… pic.twitter.com/2lQgatvilY
— Wu Blockchain (@WuBlockchain) January 8, 2026
Profit-Taking and Whale Activity Increase XRP Selling Pressure
Investors attribute the outflow to profit-taking and heightened volatility across the crypto market. Although one day of redemptions may not signal a long-term trend, ongoing regulatory developments and market dynamics remain closely watched by market participants. The outflow coincided with WisdomTree filing to withdraw its XRP ETF application with the U.S. SEC. This regulatory news likely added pressure to the market, intensifying redemptions in the 21Shares ETF.
CryptoQuant exchange data showed a tough session. Both long and short positions faced heavy liquidations. Binance saw a sharp rise in liquidations after long positions were wiped out. Over $22 million in XRP was liquidated in 24 hours, pushing the price below $2.10 and adding selling pressure near $2.40.
The XRP Whale Flow 30-DMA stayed negative during the recent rebound. This shows that large holders continue distributing XRP. Daily outflows remain around $30 million, even after some easing in selling. Ripple added to market pressure by transferring 68,110,611 XRP worth over $148 million to Binance. This move affected investor sentiment and shows how whale activity influences market direction.
🚨 🚨 🚨 🚨 🚨 🚨 68,110,611 #XRP (148,368,372 USD) transferred from unknown wallet to unknown wallethttps://t.co/UuLRxYy2fU
— Whale Alert (@whale_alert) January 8, 2026
Crypto ETFs Face Large Outflows as Prices Drop
Alongside XRP ETFs, spot Bitcoin and Ethereum funds saw large net outflows yesterday. Bitcoin ETFs lost a total of $486 million. Fidelity’s FBTC saw $247.6 million leave, and BlackRock’s IBIT lost $130 million. Over $700 million has left Bitcoin ETFs in the past two days. Ethereum ETFs had a combined net outflow of $98.5 million on Wednesday. Grayscale’s ETHE led the decline, with $52 million exiting. This is the first net outflow day for ETH ETFs in 2026, after $457 million in inflows during the first three trading days.
According to CoinMarketCap, Bitcoin is down 2.34% in the past 24 hours. It is trading at $89,724. Ether has fallen 3.86% and is now at $3,091. XRP is down 7.57%, trading at $2.07. One analyst applying pattern recognition from the Elliott Wave Theory and market psychology expects XRP to reach at least $5 during the current cycle. According to him, if bullish momentum continues in the cryptocurrency market, XRP has the potential to reach a much higher target of $20.
Here's PROOF that #XRP can easily go to $5 this cycle (and even up to $20+) using pattern recognition from the Elliott Wave Theory and market psychology. pic.twitter.com/RK9oBneqJt
— XForceGlobal (@XForceGlobal) January 5, 2026
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Syed Ali Haider
Ali Haider is a contributing crypto writer at Crypto2Community. He is a crypto and blockchain journalist with over six years of experience and has long advocated for digital freedom and cybersecurity. Haider has been featured in several high-profile crypto and finance outlets, including Coincult, AltcoinBeacon, BTCRead, and more.
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