XRP ETFs see $40M of outflows after eight-week run of inflows

Core Insights - U.S. spot XRP exchange-traded funds (ETFs) experienced their first net outflow day since mid-November, with outflows totaling $40.8 million on January 7, marking a significant shift from a two-month inflow streak that had accumulated $1.2 billion in total inflows and brought total net assets to approximately $1.53 billion, representing about 1.16% of XRP's market cap [1] Group 1 - The outflow was primarily driven by 21Shares' TOXR, which saw a redemption of $47.25 million, while other issuers like Canary, Bitwise, and Grayscale reported small inflows or flat flows [2] - The total value traded across the XRP ETF complex was $33.74 million, indicating activity without panic, contrasting with previous outflow days seen in bitcoin and ether spot ETFs shortly after their listings [3] - The first outflow does not necessarily indicate a trend reversal, as single-fund redemptions may reflect portfolio rebalancing or market maker inventory management rather than a broad shift in investor sentiment [4] Group 2 - XRP's performance has been notably strong entering the new year, and the market is closely monitoring ETF flows to gauge whether demand is still absorbing supply or beginning to decline [4]