XRP ETFs See First Outflows as Crypto Fund Flows Shift in 2026

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• XRP ETFs recorded their first net outflow day since launch, ending a long inflow streak.
  
• Bitcoin and Ether ETFs saw much larger withdrawals, signaling broader market rebalancing.
  
• Major banks like Morgan Stanley continue entering crypto ETFs despite short-term volatility.

US-listed spot XRP exchange-traded funds (ETFs) posted their first net outflow day since launch this week, signaling a shift in investor behavior after months of steady accumulation. While the pullback was modest, it arrived alongside heavy selling across major crypto ETFs, underscoring a broader normalization in digital asset fund flows at the start of 2026.

The development comes as traditional finance players, including Morgan Stanley, deepen their exposure to crypto ETFs — not just for short-term performance, but for long-term strategic positioning.

XRP ETFs Break Their Inflow Streak

Spot XRP ETFs saw roughly $40.8 million exit on Wednesday, ending a multi-week run of uninterrupted inflows that began in mid-November. The reversal followed a strong start to the year, with XRP-linked funds pushing cumulative net inflows to around $1.2 billion before the dip.

Despite the setback, XRP ETFs remain among the strongest-performing crypto exchange-traded products. Total net assets continue to hover above $1.5 billion, reflecting sustained institutional interest even as short-term sentiment cools. XRP itself slipped below $2.15 during the same period, down roughly 7% over 24 hours, suggesting ETF flows and spot prices are once again moving in closer alignment.

Bitcoin and Ether ETFs Face Heavier Pressure

XRP’s outflow coincided with a sharp downturn across larger crypto ETFs. Spot Bitcoin ETFs recorded their biggest single-day outflow since November, shedding close to $486 million. Ether ETFs also turned negative, posting nearly $100 million in net outflows after several days of gains.

The pattern highlights a broader rebalancing underway. After strong inflows at the start of January, investors appear to be trimming exposure to the largest crypto assets, likely locking in profits or adjusting risk amid market volatility.

Smaller Crypto ETFs Hold Their Ground

While Bitcoin, Ether, and XRP ETFs pulled back, smaller crypto-linked products showed relative resilience. Spot Solana ETFs continued to attract modest inflows, while Chainlink and Dogecoin ETFs remained largely flat after early-year gains.

This divergence suggests investors may be rotating into selective altcoin exposure rather than exiting crypto ETFs altogether.

The uneven ETF landscape hasn’t deterred major financial institutions. Morgan Stanley recently filed to launch spot Bitcoin and Solana ETFs, a move that some analysts say is as much about reputation and positioning as it is about assets under management.

Also Read: $1B Inflows and Counting: Why XRP ETFs Are Winning While BTC ETFs Lose

According to industry observers, even a moderate-performing crypto ETF can offer strategic benefits — from attracting younger clients to strengthening a firm’s image as forward-looking. Analysts also note that a major bank entering the crypto ETF market adds legitimacy to the sector and could encourage competitors to follow.

XRP’s first outflow day may mark a transition rather than a reversal. After weeks of one-way inflows, ETF activity across crypto is beginning to reflect a more balanced, mature market — one where sentiment, price action, and institutional strategy no longer move in lockstep.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.