XRP ETFs Have Turned Red For The First Time Ever, Will Price Follow?

US spot XRP ETFs recorded their first-ever internet outflow on Wednesday, January 7, 2026, breaking a 36-day streak of steady inflows since their launch in Q4 2025. The shift instantly raised a crucial query for the market: Does this change in ETF flow direction sign a deeper draw back for XRP’s worth, or is it a short-term reset inside a still-intact construction? Recent worth motion and broader market context recommend the reply is extra nuanced than a easy bearish continuation.

First Ever Red Day For XRP ETFs

The internet outflow for XRP ETFs totaled roughly $40.8 million, pushed completely by a $47.25 million redemption from 21Shares’ TOXR, as Canary Capital, Bitwise, Franklin Templeton, and 21Shares all recorded notable outflows in the course of the interval. This heavy promoting stress was partially offset by restricted inflows into choose merchandise, with Canary’s XRPC attracting $2.32 million, whereas Grayscale’s GXRP stood out as the one fund to submit optimistic flows, including about 0.13% or roughly $1.69 million, according to SoSoValue information.

Despite this single day of outflows, XRP ETFs proceed to carry vital belongings, roughly $1.53 billion, simply over 1% of the cryptocurrency’s general market capitalization. The cumulative fund circulation since launch stays strongly optimistic, indicating institutional demand has not disappeared. 

Following the pink ETF print, XRP’s price declined round 7%, slipping under $2.10 after failing to beat resistance close to $2.26. This transfer occurred inside a broader short-term market pullback and didn’t instantly unwind earlier good points from sustained ETF accumulation. Short-term worth response is extra seemingly tied to merchants reacting to ETF information and simultaneous weak point in broader crypto markets, fairly than an remoted lack of confidence within the altcoin itself.

Broader ETF Outflows Reflect Market-Wide Risk Rotation

The first pink day for XRP ETFs coincided with heavy outflows throughout different main crypto ETFs, highlighting a broader risk-off shift in institutional positioning amid ongoing regulatory recalibration. This got here as WisdomTree quietly exited the spot XRP ETF race, withdrawing its SEC submitting with none shares issued. Spot Bitcoin ETFs concurrently recorded withdrawals totaling roughly $486 million, marking one of many largest single-day outflow prints in early 2026.

Spot Ether ETFs additionally turned adverse, with about $99 million in internet outflows reported, representing the primary internet exit day for ETH merchandise this yr. Together, these synchronized strikes recommend the stress was not remoted to XRP devices, however a part of a wider rotation throughout crypto-linked funds as capital reassessed publicity.

Such market-wide ETF weak point tends to amplify short-term worth volatility and drive correlated strikes throughout digital asset prices. While prior inflows nonetheless present a level of assist, the mixture of fund redemptions and issuers stepping again from new launches raises questions on whether or not this session marks a short lived pause or the beginning of a extra cautious section for regulated crypto exposure.