XRP Spot ETF Experiences Net Outflow: Whale Liquidity Data Shows Reduced Large-Scale Selling Risk

Source: Yellow Original Title: XRP ETFs Record $41M Outflow as Whale Flows Signal Lower Risk of Mass Selling

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Market Overview

XRP spot ETFs in the US market experienced their first net outflow, with a total of $40.8 million redeemed after 36 consecutive days of net inflows.

This shift aligns with broader weakness in cryptocurrency ETFs, with Bitcoin funds seeing outflows of $486 million and Ethereum products outflows of $98.5 million.

Despite the outflows, the downward trend in whale flows to a major exchange since mid-December indicates a lower risk of sudden large-scale sell-offs.

Specifics

21Shares XRP ETF contributed to this outflow, with the TOXR fund redeemed for $47.25 million.

Canary, Bitwise, and Grayscale each recorded modest net inflows of about $2 million.

Since November, total net inflows have reached $1.2 billion, with total assets under management at $1.53 billion.

XRP dropped 6.4% to $2.10, with trading volume decreasing over 30% to $4.14 billion.

CryptoQuant data shows that the proportion of whale funds flowing to a major exchange decreased from over 70% at the end of 2025 to about 60%.

Why It Matters

Analyst ArabxChain stated, “Since mid-December, the decline in whale liquidity, although still relatively high, is a positive sign in the medium term because it reduces the probability of sudden large-scale sell-offs.”

This outflow represents a normal profit-taking after XRP surged 30% to $2.40 earlier this month.

Retail behavior remains stable, despite the first institutional withdrawal, with no signs of panic selling.

Net inflows in January slowed compared to December’s $1.17 billion, but remained positive, with $24.4 million recorded as of January 7.

XRP has risen 13% over the past seven days.