XRP ETFs See First Capital Pullback as Crypto Fund Flows Diverge

Key Moments

Normalization Hits XRP ETFs After Strong Launch Phase

U.S. spot XRP exchange-traded funds (ETFs) experienced their first day of net redemptions on Wednesday, ending a multi-week run of steady inflows that had brought in more than $1 billion since launch. Approximately $40.8 million exited the products, according to SoSoValue data, marking the first daily net outflow since the XRP (XRP) ETFs began accumulating assets in mid-November 2025.

The withdrawal came on the heels of a robust start to the year, during which the vehicles had logged consecutive inflow days and pushed cumulative net inflows to $1.2 billion. Despite the reversal, XRP ETFs remain among the leading crypto exchange-traded products (ETPs), with total net assets still above $1.5 billion.

Broad Crypto ETF Redemptions Pressure Major Products

The XRP ETF outflow occurred alongside widespread selling across major crypto-linked ETFs. Data from Farside Investors shows that spot Bitcoin (BTC) ETFs recorded $486 million in net outflows on Wednesday, the largest daily redemption since November. Spot Ether (ETH) ETFs also swung negative on the same day, booking $98 million in net outflows.

Early-2026 Crypto ETF Flows Show Divergent Trends

Flows across crypto ETFs have turned mixed in the opening trading days of 2026, with significant differences by asset.

Spot BTC ETFs started January with strong demand, attracting $471 million on Friday and $697 million on Monday, before reversing course with $243 million in net outflows on Tuesday and an even larger $486 million on Wednesday. Spot ETH ETFs followed a similar arc, drawing $174 million on Friday, $168 million on Monday, and $114 million on Tuesday, then turning negative with $98 million in redemptions on Wednesday.

Smaller Crypto ETFs Hold Up Better

While the largest crypto ETFs have moved into mixed or negative territory, several smaller products have shown comparatively resilient flows.

Spot Solana (SOL) ETFs have continued to bring in new capital, posting modest but steady inflows during the first trading sessions of January. Chainlink (LINK) ETFs moved to flat flows on Wednesday after several sessions of incremental inflows ranging from $822,000 to $2.2 million.

Dogecoin (DOGE) ETFs saw no net change on Tuesday and Wednesday. That followed a strong start to the year, with $2.3 million in inflows on Friday and $1.6 million on Monday.

XRP ETF Story Shifts From One-Way Inflows to More Balanced Flows

The first outflow day for XRP ETFs follows an extended period of consistent demand. The funds previously surpassed $1 billion in assets under management, a milestone that has been linked to investor comfort with the token and its market history. On Dec. 19, CF Benchmarks CEO Sui Chung said XRP’s long track record made it easier to attract traditional investors.

Momentum in XRP ETFs carried through December. By Dec. 30, spot XRP products had maintained a 29-day streak of consecutive inflows, even as other crypto ETF vehicles saw significant monthly redemptions amid year-end portfolio repositioning.

XRP entered 2026 as one of the strongest-performing major digital currencies, backed by ETF inflows, positive sentiment, and falling exchange balances. However, analysts cautioned that ETF demand and market optimism alone do not ensure ongoing price gains.

The latest outflow may signal a move toward more normalized trading dynamics. At the time of writing, XRP is priced at $2.12, representing a 7% decline over the last 24 hours.