Recent data reveals a significant shift in the XRP market, marked by the first-ever daily outflow from its spot Exchange-Traded Funds (ETFs) and a notable withdrawal of tokens from major trading platforms. According to SoSoValue data, the five approved XRP ETF products recorded a net outflow of $40.8 million on January 7, 2026. This event ended a 54-day streak of continuous inflows and effectively erased almost all the inflow gains from the first week of the year, bringing total cumulative inflows down to approximately $1.20 billion.
The outflow shock was severe, occurring just two days after the ETFs posted their strongest session of the year with an inflow of $46.1 million. This sudden reversal caused total ETF assets under management to drop from $1.65 billion to $1.53 billion. The 21Shares TOXR product led the redemptions with a massive $47.25 million outflow, pushing its cumulative flow into negative territory. Other funds, including Bitwise, Canary, and Grayscale, saw minor withdrawals, while Franklin's flows remained stable. Every fund finished the day trading below its Net Asset Value (NAV), with an average price drop of -4.03%.
Concurrently, on-chain data analyzed by researcher Leonidas Hadjiloizou shows a net outflow of nearly 22 million XRP from major cryptocurrency exchanges in the first week of January. The analysis, tracking wallets holding at least 1 million XRP, indicates the total balance across tracked exchanges dropped by 0.14% since December 31. This movement exhibited a peculiar regional divergence: the most significant outflows occurred on South Korean exchanges. Upbit, the leading Korean exchange, saw a decline of nearly 36 million XRP, while Bithumb recorded an outflow of roughly 8 million XRP. In contrast, global giant Binance actually saw an increase in XRP holdings of nearly 28 million XRP, and Crypto.com recorded an inflow of roughly 9 million XRP.
The market impact was immediate and severe. Following the ETF outflow news, XRP's price on the spot market took a nosedive. It slid from highs around $2.42 on January 5 to as low as $2.08 during the early session on Binance on January 8, representing a 14% drop. This correction followed a period where buyers were exhausted around the $2.38–$2.40 resistance level. The combined pressure from the ETF outflow—the first real test of sustained institutional appetite—and the exchange withdrawals has significantly dampened the recent bullish sentiment for XRP.
