Institutional demand for spot cryptocurrency exchange-traded funds (ETFs) has cooled significantly, with both XRP and Ethereum products recording substantial net outflows for the week of January 19–23, 2026. Data from SoSoValue reveals that U.S. spot XRP ETFs experienced their first net negative week since their highly anticipated debut, with a total net outflow of $40.64 million over seven days.
The selling pressure was not uniform. The vast majority came from Grayscale’s XRP Trust (GXRP), which saw $55.39 million exit the fund. Bitwise's XRP ETF managed to buck the trend with $8.69 million in inflows, but it was insufficient to offset the overall bleeding. Despite the weekly outflow, XRP ETFs still boast a cumulative net inflow of $1.23 billion and hold $1.36 billion in assets under management (AUM).
The situation was similarly grim for other major assets. U.S. Spot Bitcoin ETFs experienced their second-largest weekly outflow in history, shedding a staggering $1.328 billion. Ethereum spot ETFs also faced a brutal week, recording $611 million in net outflows, according to data from Coinglass. This brings the combined exit from Bitcoin and Ethereum ETFs to nearly $2 billion, painting a grim picture of current institutional confidence.
The cooling demand serves as a reality check for holders who viewed ETF approvals as a guaranteed catalyst for all-time highs. XRP, which staged a rally to $2.40 in early January, has faced a "devastating retrace" that erased all year-to-date gains. At the time of reporting, XRP was trading at $1.88, according to CoinGecko. Ethereum's price action has mirrored the outflows, sliding roughly 15% from mid-January highs near $3,350 to trade in the $2,860–$2,900 range, having cleanly broken below the key $3,000 psychological support level.
The correlation between sustained redemptions and price pressure is tight. However, on-chain behavior tells a more nuanced story. While ETF flows point south, some large Ethereum addresses have been accumulating during the dip, with reports of over $1 billion in accumulation from big holders. Furthermore, the underlying Ethereum ecosystem continues to see institutional adoption, with payment giants integrating stablecoin settlement and top-tier banks deploying ETH-collateralized loans and tokenization services.
Analysts note that a 3% outflow does not signify abandonment but rather institutional caution during price declines, a pattern seen in earlier cycles. The contrast highlights the current market tension: short-term ETF-driven selling pressure versus long-term belief in the underlying blockchain infrastructure and utility.