Warning Signs for Ripple: $41M XRP ETF Withdrawal Sparks Market Concern

TLDR

• $41M XRP ETF withdrawal pressures Ripple, dropping price below $2.10.

• Ripple faces selling pressure as XRP ETFs see first major outflow.

• XRP ETF outflow sparks market concern, XRP dips after strong early 2026 gains.

Ripple’s XRP faced notable selling pressure after U.S. spot ETFs recorded a $41 million outflow. The first reversal followed 36 consecutive days of inflows since November 2025. The withdrawal pushed XRP below $2.10, highlighting potential short-term pressure on the market.

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XRP ETFs See Major Withdrawal

XRP ETFs experienced their first net outflow since their debut, signaling a shift in market activity. Investors redeemed $47.25 million from 21Shares’ TOXR, while other funds received modest inflows. Canary’s XRPC gained $2.32 million and Grayscale’s GXRP added $1.69 million, partially offsetting the withdrawal.

Total assets held by XRP ETFs now stand around $1.53 billion, representing roughly 1.16% of XRP’s $128 billion market capitalization. The funds had shown strong performance, accumulating assets steadily during the past month. This reversal could signal a short-term change in sentiment for the cryptocurrency.

The pullback in XRP ETF flows coincided with broader market adjustments across crypto exchange-traded products. ETF redemptions followed strong inflows in late 2025, which had supported XRP’s early-2026 price gains. Market participants are seeing XRP respond to ETF activity more directly than before.

Bitcoin ETFs Also Register Outflows

Spot Bitcoin ETFs recorded significant outflows on the same day, reflecting broader market adjustments. Fidelity’s FBTC lost $247.6 million, while BlackRock’s IBIT saw $130 million in redemptions. The withdrawals marked Bitcoin ETFs’ largest single-day outflow since November.

The shift in capital from Bitcoin ETFs highlights volatility in crypto-linked funds this week. Despite early inflows supporting prices, heavy redemptions caused downward pressure. The market responded as major funds adjusted positions and investors rebalanced holdings.

Investors observed that these ETF flows are increasingly influencing the spot market for Bitcoin. The correlation between fund movements and cryptocurrency prices remains strong. This connection could foreshadow similar volatility for other major coins like XRP.

Ether ETFs Flip Negative

Spot Ether ETFs turned negative on the same trading day, reflecting a market-wide pullback. Grayscale’s ETHE led with $99 million in outflows, offsetting initial inflows from early January. Ether funds saw $457 million inflows in the first three trading days, making the reversal notable.

The net outflow for Ether ETFs signals shifting capital patterns across major crypto assets. This movement coincides with XRP’s first ETF outflow, reinforcing short-term downward pressure. Ether’s price also responded to redemptions, adding to broader market sentiment.

Smaller crypto ETFs, including Solana-based products, continued to receive steady inflows despite market volatility. These funds demonstrated resilience amid larger crypto ETF adjustments. The contrast emphasizes how capital allocation varies across digital asset ETFs.