U.S. spot XRP exchange-traded funds (ETFs) logged their first weekly outflow in three months during the week of October 12–16, bringing an end to a 13-week net inflow streak. Data from SoSoValue shows the investment products recorded $1.84 million in net withdrawals, driven by late-week redemptions that erased earlier gains.
ETF Outflows End 13-Week Winning Streak
The shift into negative territory remains minor relative to cumulative net inflows, which stood near $1.8 billion as of mid-October. Early in the week, fund flows remained flat before turning positive on Wednesday with $740,000 in net inflows. However, a $2.47 million redemption on Friday—primarily coming from Canary Capital's XRPC product—pushed the weekly total into the red. Without the XRPC redemption, spot XRP ETFs would have posted a weekly net inflow of approximately $630,000.
The outflow coincides with softening price performance across secondary markets. XRP traded near $1.28, down 1.60% over a 24-hour period and 6.3% over the past month. The asset continues to test support near $1.30 after failing to sustain levels above key moving averages, mirroring broader volatility where XRP tested crucial support zones.
XRP Ledger Activity Plunges 72%
Compounding the drop in institutional demand, on-chain analytics indicate a sharp contraction in underlying network transactions. According to XRPSCAN, payment volume on the XRP Ledger dropped to 119.5 million XRP on October 17. This represents a 72.3% single-day decline and sits well below the network's 30-day average of 629.3 million XRP.
Historically, XRP Ledger payment volume has demonstrated significant volatility, characterized by brief transaction surges followed by sharp contractions, well off the network's all-time high of roughly 7 billion XRP. While a single-day drop does not confirm structural weakness, it underscores how rapidly network activity has cooled.
- $1.84 million: Net weekly outflows registered by U.S. spot XRP ETFs for October 12–16.
- $2.47 million: Friday redemptions led by Canary Capital's XRPC fund.
- 119.5 million XRP: On-chain payment volume recorded on October 17, down 72.3% in a single day.
- $1.28: XRP trading price, reflecting a 6.3% decline over the past month.
Why It Matters
The simultaneous pullback in institutional ETF demand and on-chain transaction volume suggests a temporary loss of market momentum for XRP. While a $1.84 million redemption is small relative to $1.8 billion in total inflows, the concentration of sell-offs in Canary Capital's XRPC indicates that institutional investors may be taking profits or pausing accumulation near current technical support levels. Monitoring whether XRP Ledger payment volumes bounce back toward the 629.3 million XRP 30-day average will be essential to determining whether underlying utility can anchor the asset's valuation.
