U.S. spot XRP exchange-traded funds recorded their first net outflow, with 40.8 million dollars leaving the market after a series of 36 days of inflows.
This reversal coincided with a broader weakness in crypto ETFs, as Bitcoin (BTC) funds lost 486 million dollars and Ethereum-based products shed 98.5 million dollars.
Despite these outflows, the decline in whale flows to Binance since mid-December suggests a reduced risk of sudden selling.
What happened
The 21Shares XRP ETF was the main driver of outflows, with $47.25 million leaving TOXR.
Canary, Bitwise, and Grayscale recorded modest inflows of about $2 million each.
Cumulative inflows have reached $1.2 billion since November, bringing total assets to $1.53 billion.
XRP dropped 6.4% to $2.10 while trading volume declined by over 30% to $4.14 billion.
CryptoQuant data shows whale flows to Binance decreased by over 70% at the end of 2025, dropping to around $60 million.
Read more: Why BlackRock Moved $318M In Bitcoin And Ethereum To Coinbase During ETF Exodus
Why it matters
"The decline in whale flows since mid-December, even though they remain at relatively high levels, is a positive medium-term sign, as it reduces the likelihood of a sudden sell-off," according to analyst ArabxChain.
This outflow reflects normal profit-taking after XRP's 30% rally to $2.40 earlier this month.
Retail behavior remained stable, with no panic selling despite the first institutional withdrawal.
January inflows slowed compared to December's $1.17 billion, but remained broadly positive at $24.4 million as of January 7.
XRP remains up 13% over the past seven days.
Read next: ZEC In A Freefall, Here's Why An Analyst Predicts $55 Range
