US spot XRP exchange-traded funds recorded net outflows for the first time in two months, breaking a sustained inflow streak and missing the broader market recovery that lifted Bitcoin and Ethereum funds during the same period.
Data from market tracking sources shows that XRP ETFs shed approximately $7.18 million in a single day, ending a streak of consecutive inflows that had lasted since May. The outflow comes at a time when Bitcoin and Ethereum ETF products were seeing renewed investor interest, contributing to a significant market rebound across the digital asset sector.
The divergence between XRP ETF flows and those of larger cryptocurrencies suggests that institutional sentiment toward XRP may be diverging from the broader market trend. While Bitcoin ETFs attracted fresh capital as prices stabilized and began to recover, XRP-focused funds failed to capture similar enthusiasm from institutional investors.
Several factors may be contributing to the slowdown in XRP ETF demand. The ongoing legal ambiguities surrounding XRP’s regulatory status continue to make some institutional investors cautious, despite the partial legal victory Ripple achieved in mid-2023. Additionally, XRP has underperformed relative to Bitcoin and Ethereum during the recent market upturn, which may have reduced its appeal to momentum-driven fund flows.
The outflow also highlights the relatively smaller scale of XRP ETF products compared to their Bitcoin and Ethereum counterparts. XRP ETFs launched in the US in early 2025 with considerably less initial capital than the multi-billion dollar Bitcoin ETF market, making them more susceptible to flow reversals.
Market observers will be watching whether this outflow represents a temporary shift or the beginning of a broader trend. Sustained outflows from XRP ETFs could signal diminishing institutional conviction in the asset, while a quick return to inflows would suggest the break was an anomaly.
This article was adapted from U.Today. Read the original here.
