XRP ETFs Record First Net Outflows Since January as Whales Accumulate 140 Million Tokens

Ripple’s cryptocurrency, XRP, is facing its first serious test of the year. This comes after months of steady growth, as well as sustained inflows, as spot XRP exchange-traded funds in the United States report their first net outflows since late January. The negative trend in XRP comes at a time when there is a rise in macroeconomic/geopolitical headwinds in the cryptocurrency space. The headwinds include a rise in inflation in the United States, as well as a surge in tensions in Eastern Europe.

According to the latest data from SoSoValue and CoinShares, a total of $4.09 million was withdrawn from the cryptocurrency market in the first week of March. The move marks a significant end to a series of positive sentiments experienced in the market. The total net inflows for spot XRP ETFs reached a mid-week high of $1.26 billion.

Related: XRP Bull Flag Breakout After 8-Month Consolidation To Send Price To $11

21Shares Leads the Institutional Exit

The selling pressure was not evenly distributed among the various fund providers. The leading loser was the 21Shares XRP ETF, which recorded the lion’s share of the liquidations. On Friday alone, the fund recorded the largest outflow in over a month, totaling an astonishing $10.60 million.

Coin Bureau’s Tweet about the XRP Outflow | Source: X

Similarly, another important market participant also recorded an outflow, albeit at a lower rate. The Bitwise XRP ETF recorded an outflow of $3.65 million. The Grayscale XRP Trust recorded an outflow of approximately $2.37 million. The new entrants, such as the funds managed by Canary Capital and Franklin Templeton, recorded zero outflows for the same period. This indicates that some market participants have decided to stay on the sidelines instead of investing.

The timing of the outflows was characterized by the failed technical breakout for the XRP asset. The asset was attempting to break the resistance at the $1.45 price level throughout the week, driven by the resurgence in the market. The market was, however, pushed back into the red after the Bitcoin price was rejected at the $74,000 level, coupled with the negative ETF inflows. The XRP price was pushed back into the $1.35 zone.

Whale Accumulation: The Counter-Narrative

While the ETFs’ data indicates a decline in institutional investment interest, the on-chain data presents a different narrative that is much more positive for the price. While the “paper hands” in the ETFs sector were selling due to fear, the crypto whales were accumulating assets in the same period. The whales were “buying the dip” in the cryptocurrency market.

According to the on-chain data, the whales accumulated over 140 million XRP tokens in the same period when the ETFs recorded their outflows. This is a massive accumulation that translates to a $190 million investment at the current prices. This indicates a divergence between the institutional investment fund sector and the long-term on-chain investors.

Although the ETF market is expected to see a price fall resulting from the outflows, the accumulation of the on-chain investors over the long term is an indicator that the price will stabilize before reversing. Whale accumulation has indicated that the Whale Flow 30-day moving average is positive for the first time in over three months. This is an indicator that institutional or “smart money” investors are positioning themselves in anticipation of the expected price reversal in the near future.

Suggested: XRP Price Faces Early 2026 Pressure Despite Huge ETF Success

Market Context and Price Action

In the crypto market, it is observed that over the last few days, there have been significant challenges. For instance, there have been significant ETF outflows from the Bitcoin and Ethereum markets. The outflows have exceeded $700 million over the last 48 hours. At the same time, there has been an increase in oil prices due to the crisis in the Middle East and an overall rise in risk aversion among investors.

As far as the price action of XRP is concerned, the price is currently at approximately $1.34, which is slightly higher than the critical price of $1.31.The CryptoWZRD team has indicated that the price of XRP closed the week without any directional bias. It is essential that the price is able to trade above the resistance level of $1.3820. If the price fails to trade above the $1.30 level, there is the possibility that the price could trade down to the level of $1.11, a price that has not been seen since the flash crash that occurred at the start of February.

Also Read: XRP Price Breakout Analysis: Can XRP Reach $1.95 After ETF Demand?

Long-Term Outlook: Ripple’s Ecosystem Expansion

Although the price action of XRP is quite volatile at the moment, the ecosystem for the cryptocurrency is growing. In fact, the Ripple CEO recently spoke at the XRP Australia 2026 conference, encouraging the investor community to think long-term. The Ripple CEO indicated that the adoption rate of the XRP Ledger was quite rapid.

“We are building infrastructure that will be here for decades. Short-term price action often fails to reflect the massive technological shift happening underneath the surface.” While the price for the asset may be subject to short-term headwinds, the overall ecosystem for the asset continues to grow. For instance, the RLUSD stablecoin issued on the Ripple Ledger continues to grow to a $1.5 billion supply. In fact, a recent proposal for the XLS-66 amendment will allow for lending to occur natively on the XRPL. While the current validator consensus for the lending protocol is only 17.14%, it could serve as a massive catalyst for the adoption of decentralized finance on the network.

Conclusion

While the recent outflows from the XRP ETFs serve as a sanity check for the overall price of the asset, the $4 million outflow from the 21Shares ETF should not alarm investors. In fact, the recent accumulation of 140 million XRP from the asset’s whales indicates that the overall sentiment for the asset remains strong.

While the asset’s price will likely test the $1.30 support in the coming days, the recent accumulation by whales will likely provide the necessary support for the price to attempt to breach the $1.50 psychological resistance.

Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.