The U.S. spot XRP Exchange-Traded Funds (ETFs) recorded their largest single-day outflow to date, with $53.31 million withdrawn on January 20, 2026. This significant outflow, primarily driven by Grayscale's GXRP ETF which saw $55.39 million in redemptions, marks only the second net outflow since the funds' launch in mid-November 2025. The broader crypto market, including Bitcoin and Ethereum ETFs, also faced selling pressure amid rising geopolitical tensions and macroeconomic uncertainty.
This market instability coincides with a massive $1.3 trillion loss in the U.S. stock market on the same day. Major indices like the Nasdaq and S&P 500 erased all their 2026 gains, a downturn attributed to rising U.S.-EU trade tensions and a weakening Japanese bond market. This traditional market shockwave is prompting investors to seek alternative assets, with some analysts pointing to XRP's growing institutional adoption as a potential safe haven.
XRP's price is currently battling to hold the $2 support level, trading around $1.91 at the time of reporting, down approximately 20.7% from its January 6 peak of $2.41. Crypto analyst Cilinix warned that failure to reclaim $2 could lead to further declines toward $1.60, $1.25, or even $1.00, signaling a breakdown from a 14-month trading range.
Despite the recent ETF outflows, XRP's institutional footprint has been expanding. The launch of XRP ETFs in late 2025 attracted large investments, with assets under management quickly growing to $1.3 billion. These funds are creating a supply squeeze by locking up a portion of XRP's circulating supply, reducing the amount available for trading. Ripple's strategic partnerships with major financial institutions like Mastercard and BNY Mellon continue to bolster XRP's utility in cross-border payments, aiming to capture a share of the estimated $21 trillion in annual global financial transactions by 2030.
