XRP ETFs Defy Market Downturn, Hit Record Trading Volume

On January 29, 2026, the nascent market for Spot XRP ETFs faced its most significant test to date. Data from SoSoValue revealed a record single-day outflow of $92.9 million, the largest reduction since these funds launched on November 13, 2025. This event marked only the third outflow in the ETFs’ history, causing total net assets to plummet from $1.39 billion to $1.21 billion. The withdrawal was overwhelmingly driven by Grayscale’s GXRP, which saw a staggering $98.39 million exit the fund.

However, the narrative shifted with surprising speed. Defying bearish expectations, the ETFs registered a daily total net inflow of $16.79 million just one day after the massive withdrawal. This inflow was fueled by capital moving into competing products from Franklin Templeton’s XRPZ, Bitwise’s XRP ETF, and Canary’s XRPC, which partially offset Grayscale’s outflow. While total net assets dipped slightly further to $1.19 billion, the swift inflow signaled underlying investor demand that contradicted the initial panic.

More impressive than the inflow rebound was the surge in trading activity. According to data from The Block, Spot XRP ETFs achieved a record cumulative trading volume, which rose to $2.23 billion from $2.15 billion in the immediate aftermath of the outflow. This record volume occurred against a grim backdrop: the price of XRP itself fell from $1.92 to $1.80 over the same 24-hour period, and total Assets Under Management (AUM) for the ETFs declined from $1.48 billion to $1.32 billion.

The trading volume leadership revealed a competitive landscape taking shape. Bitwise’s XRP ETF recorded the highest trading volume at the time, followed by Grayscale’s GXRP, Franklin Templeton’s XRPZ, Canary’s XRPC, and 21Shares TOXR. This activity indicates that while some investors were exiting via Grayscale, others were actively trading and reallocating capital among the various ETF providers, creating robust volume even as net assets shrank.

While the ETF market showed signs of life, the underlying cryptocurrency told a different story. The price of XRP has continued its decline, extending losses from earlier in the year. According to CoinMarketCap, XRP dropped by more than 11% over the past week and over 3% in 24 hours, settling around $1.69. This represents a decline of more than 15% from its recent $2 level.

The weakness extends beyond price. XRP’s daily trading volume was down by more than 26.6%, indicating a potential decline in trader confidence. This sentiment is reflected in XRP’s Fear and Greed Index, which has fallen into the “Fear” zone, mirroring extreme fear signals across the broader crypto market. This creates a stark contrast: record ETF trading volumes suggest institutional or sophisticated market participation, while the direct spot market for XRP shows retreat and anxiety.

The simultaneous occurrence of record ETF volumes and a slumping XRP price points to evolving dynamics within digital asset markets. The ETFs, representing a packaged, regulated product, appear to be attracting a different flow of capital than the underlying spot market. The inflows into funds from Franklin Templeton, Bitwise, and Canary, even as Grayscale saw outflows, suggest investors are making nuanced bets on specific fund managers or strategies, rather than abandoning the XRP thesis entirely.

This period highlights the complex interplay between a new financial instrument and its volatile underlying asset. The resilience of XRP ETFs in the face of a significant price correction and major outflow demonstrates a maturing market structure. However, the sustained decline in XRP’s price and the prevailing “Fear” sentiment serve as a reminder that the foundational crypto market remains highly susceptible to volatility, creating a fascinating divergence for investors to watch.