XRP exchange-traded funds recorded a total outflow of $18 million over two consecutive trading sessions this week, prompting renewed scrutiny of institutional appetite for the digital asset.
Two-Day Outflows Spark Debate on Institutional Demand
Crypto influencer John Squire reported that XRP ETFs saw $10.4 million withdrawn on Monday and an additional $7.6 million on Tuesday. These back-to-back outflows followed nearly two weeks without reported inflows, fueling concerns about waning investor interest in the funds.
Some market participants have interpreted the lack of recent inflows alongside the substantial outflows as evidence that demand for XRP ETFs may be faltering. The swift withdrawals represent one of the most significant declines in institutional participation since the products launched.
Squire cautioned against drawing rapid conclusions from the past two sessions and urged investors to take a long-term view of ETF flows rather than focusing exclusively on short-term figures.
In his comments, Squire underscored that while $18 million exited XRP ETFs over two days, the funds remain net positive for the last 30 sessions and still retain assets totaling $1.71 billion since their debut. He maintained that the recent declines are not indicative of a broader trend when assessed against cumulative inflows.
Net Positive Flows and Current Assets
Squire stated that XRP ETFs are still net positive by approximately $1.3 million over the last 30 trading sessions, despite the recent setbacks. He highlighted that, from launch to present, these ETFs have accumulated roughly $1.71 billion in investments.
According to Squire, the $1.71 billion invested corresponds with holdings of about 973 million XRP, representing an estimated 1.53% of XRP’s circulating supply. He argued that the scale of cumulative inflows dwarfs the recent two-day outflow, making it less significant in the broader context.
| Period | Inflows/Outflows |
|---|---|
| Monday | $10.4 million outflow |
| Tuesday | $7.6 million outflow |
| Last 30 sessions | +$1.3 million net inflow |
| Since launch | $1.71 billion total inflow |
Mini dictionary: ETF (Exchange-Traded Fund) is an investment fund traded on stock exchanges, designed to track the performance of specific assets or indexes. Crypto ETFs allow traditional investors to gain exposure to digital assets like XRP without holding the underlying cryptocurrency directly.
Community Reactions and Investor Sentiment
Squire’s posts prompted a series of responses from the XRP community. Scott Reid challenged the positive interpretation of cumulative ETF data and described the recent withdrawals as the end of the XRP trade. He also referenced reported difficulties at Evernorth, criticized the lack of fresh ETF inflows, and made claims against XRP’s legitimacy.
In another response, Greg Coley offered a skeptical outlook. He suggested waiting another two weeks to see if further withdrawals would erode the remaining ETF investments, signaling continued doubts among some investors about the sustainability of institutional demand.
Long-Term Flows Remain in Focus
Squire concluded by asking whether recent outflows were a sign of panic or simply a minor adjustment in the context of over $1.7 billion in accumulated inflows since launch. While persistent outflows could eventually undermine investor confidence, data suggest XRP ETFs have maintained a solid base of capital from their inception.
Squire observed that the latest $18 million in withdrawals account for a small fraction of the total capital invested in XRP ETFs since their introduction, and advised investors to judge ETF performance by long-term figures rather than isolated daily movements.
