US XRP spot ETFs see first net outflow since launch

U.S. spot XRP ETFs recorded their first net outflow in 36 trading days since their launch, The Block reported. On Jan. 7, the five funds saw a combined net outflow of $40.8 million. The outflow was driven by 21Shares' TOXR, which lost $47.25 million, while ETFs from Canary, Bitwise, and Grayscale saw combined net inflows of around $2 million. Rachael Lucas, an analyst at BTC Markets, noted that while the first net outflow is a notable change, its scale is equivalent to only 3% of the cumulative net inflows since the products' inception. She suggested the outflow was likely due to profit-taking after XRP's price surged from $1.8 to $2.4 in one week, coinciding with a broader market correction. Lucas added that XRP holdings on exchanges are at an all-time low while trading volume remains high, and various on-chain indicators point to potential bullish signals. She concluded that if capital inflows into the ETFs resume, XRP could retest the $3 price level.