XRP spot ETF sees a net outflow of $53.32 million in one day, with Grayscale leading the decline, but institutional absorption signals remain strong

Eastern Time January 20th, US XRP Spot ETF experienced a net outflow of $53.32 million in a single day. This is a microcosm of recent market volatility, but the underlying institutional attitude reflected behind it is far more complex than surface data suggests.

The True Face of ETF Outflows

According to data, yesterday’s outflow was mainly led by Grayscale XRP ETF (GXRP), with a single-day net outflow of $55.39 million. In contrast, Franklin XRP ETF (XRPZ) took a reverse approach, recording a net inflow of $2.07 million. This divergence is quite interesting — not all institutions are selling off, but rather funds are being reallocated among different products.

As of press time, the total net asset value of XRP spot ETFs is $1.34 billion, with a cumulative net inflow of $1.22 billion. From the cumulative data, the overall institutional attitude towards XRP remains a net inflow, and this single-day outflow appears more like a short-term adjustment rather than a trend reversal.

The Market Pressure Behind

The timing of this outflow is noteworthy. According to the latest news, between January 19-20, XRP’s price fell below $2, dropping to around $1.90, with a 24-hour decline of 2.77%. The pressure comes from multiple directions:

• Macro Factors: Trump’s threat to impose a 10% tariff on Europe has heightened market risk sentiment, putting overall pressure on cryptocurrencies.
• Regulatory Uncertainty: Delays in the discussion of the CLARITY Act have caused fluctuations in market expectations for stablecoin policies.
• Technical Weakness: XRP futures open interest decreased by about 9% within 24 hours to $3.55 billion, with long liquidation volume significantly exceeding short positions.

In such an environment, some investors’ decision to reduce holdings or reallocate is a normal reaction.

But signals of institutional absorption remain strong

This is the key turning point. Despite the single-day outflow, the signals from institutional levels remain robust:

According to relevant information, currently 803.78 million XRP are locked in ETFs including Canary, Bitwise, and Grayscale, accounting for 1.20% of XRP’s total supply. In just this week, XRP’s net inflow reached 22.63 million tokens, forming a stark contrast to retail investors’ cautious attitude.

More importantly, on-chain data shows that XRP balances on exchanges have fallen to historic lows, indicating that a large amount of XRP is flowing to institutions and long-term holders. This is a typical supply tightening signal — when liquidity decreases, subsequent price rebounds tend to be more vigorous.

Personal Viewpoint

This single-day outflow is more noise than signal. In the short term, the market indeed faces macro pressures and technical weakness, but from the perspective of ETF cumulative data, institutional absorption scale, and on-chain supply, the long-term attitude of institutional investors has not changed. Grayscale’s single-day outflow may reflect internal position adjustments or short-term stop-losses by some investors, rather than a denial of XRP’s fundamentals.

Summary

Although the single-day net outflow of XRP spot ETF is not small, in the context of a cumulative net inflow of $1.22 billion, it is merely short-term volatility. What truly matters are the sustained institutional absorption, accelerated supply tightening, and ongoing development of the underlying ledger technology. Short-term technical pressure is a fact, but it may be building momentum for a subsequent rebound. The key points to watch are whether the macro environment eases and whether XRP can hold steady around $2.