The recent trading activity in the cryptocurrency market has revealed a significant shift as the XRP spot exchange-traded funds (ETFs) listed in the United States recorded their first consolidated liquidations since their launch in mid-November. This unprecedented movement resulted in total withdrawals of approximately $41 million, marking an end to a streak of 36 consecutive trading days without negative flows.
Among the five available funds, the TOXR ETF managed by 21Shares experienced the most substantial outflows, with around $47.25 million exiting the product. In contrast, ETFs managed by Canary, Bitwise, and Grayscale recorded modest inflows of nearly $2 million each, which helped mitigate the overall impact of the withdrawals.
Prior to this trading session, the XRP spot ETFs had amassed around $1.25 billion in net inflows since the inception of the first fund on November 13. Analysts are noting that this recent activity, while symbolically significant, reflects only a small fraction of the total capital attracted since trading began. Rachael Lucas, a cryptocurrency analyst at BTC Markets, suggested that this behavior primarily indicates profit-taking following the recent surge in XRP price, which had risen from approximately $1.80 to $2.40 within a week.
Moreover, the adjustments in XRP are occurring alongside a broader market correction. Lucas stated, “On-chain indicators, including historically low exchange reserves and elevated transaction volumes, continue to signal an underlying strength.” She added that if inflows resume, XRP could potentially retest the $3 level.
This trend is not exclusive to XRP ETFs. Spot Bitcoin ETFs also witnessed significant liquidations amounting to approximately $486 million on the same day, notably from the FBTC ETF by Fidelity and the IBIT ETF from BlackRock. Additionally, Ether ETFs reported outflows nearing $98.5 million, marking their first negative trading day of the year.
In the spot market, the price adjustments reflected these outflows, with moderate declines observed in Bitcoin, Ether, and XRP, as investors temporarily favored stocks over cryptocurrencies.
