Key Takeaways
XRP-focused spot exchange-traded funds saw weekly net outflows for the first time in a month, as institutional demand for the asset shows signs of cooling while liquidity conditions on major exchanges weaken.
Data from SoSoValue shows the funds registered a net outflow of roughly $35,210 in the week ending May 1. This marks a reversal after three consecutive weeks of positive demand that pulled in a combined $82.88 million. The shift suggests a cooling of institutional interest that diverges from Bitcoin, which saw its own spot ETFs attract more than $153 million during the same period.
The outflows add to a complex picture for XRP, as liquidity on the world’s largest crypto exchange has also deteriorated. An analyst at Arab Chain recently flagged that XRP's 30-day liquidity index on Binance has fallen to 0.038, a level not seen since 2020, pointing to a “clear weakness in market depth.”
Despite the recent reversal, cumulative net inflows into XRP ETFs since their inception stand at $1.29 billion. The strongest period of recent demand occurred in the week of April 17, which delivered $55.39 million in net inflows alone. However, the shift to outflows, combined with thinning market depth, creates a fragile environment where even moderate capital flows could trigger sharp price swings. The current setup leaves XRP exposed to further downside risk if institutional demand continues to wane.
This article is for informational purposes only and does not constitute investment advice.
