After growing to 1.2 billion USD, XRP ETFs have shifted from inflows to outflows.

Crypto ETF XRP funds are heading toward their first month of net outflows since launching at the end of 2025, marking a slowdown after a boom period that made them one of the most successful crypto products outside Bitcoin.

Data from SoSoValue shows four XRP ETF funds experienced approximately $28 million in net withdrawals this month. Meanwhile, figures from CoinShares confirm this trend, as global XRP-linked funds became the worst-performing asset class in March, with total net outflows reaching $130 million.

Monthly inflows into XRP ETFs (Source: SoSoValue) This reversal comes after an impressive start, where XRP ETFs attracted about $1.2 billion in net capital over just four months. This pace made XRP one of the most closely watched altcoin ETFs, second only to Bitcoin and Ethereum.

However, a negative month doesn’t mean institutional capital has completely left. This mainly reflects initial demand cooling off, and the next phase will require stronger fundamentals rather than just initial enthusiasm.

Capital slowdown, but the institutional story continues

Although ETF flows weakened in March, the influence of major financial institutions on XRP remains clear.

In a filing with the U.S. Securities and Exchange Commission, Goldman Sachs revealed it holds over $152 million through four spot XRP ETFs. This is significant participation from traditional finance, which many other altcoins have yet to achieve.

Additionally, ETF flows only tell part of the story. In reality, asset managers, banks, custodians, and trading firms are quietly building positions around XRP and its ecosystem.

A January 2026 survey by Coinbase and EY-Parthenon of 351 institutional investors shows:

The report also emphasizes that institutions are now prioritizing infrastructure such as custody, trading, and tokenization, rather than just investing in assets alone.

Cryptocurrency assets that institutions are willing to invest in by 2026 (Source: Coinbase)## Ripple expands ecosystem, beyond just payments

The key point is that Ripple is no longer just a story about payments.

Over the past year, the company has expanded into several areas including:

The $1 billion acquisition of GTreasury to strengthen its position in corporate finance, while Ripple Prime (from the Hidden Road deal) offers brokerage, clearing, and financing services for institutional clients.

This means XRP’s value is no longer solely dependent on ETF capital flows. Short-term ETF withdrawals may occur alongside Ripple’s broader expansion into the financial transaction chain.

Ripple is now licensed in over 70 jurisdictions and has processed more than $100 billion in transactions through its payment products.

XRPL drives tokenization, retaining institutional capital

Meanwhile, the XRP Ledger (XRPL) network is being repositioned to serve the institutional market with higher compliance standards.

Notable upgrades include:

XRP remains central to this ecosystem, from transaction fees and reserve requirements to its role as a bridge asset in forex and lending.

Importantly, XRPL is emerging in the real-world asset (RWA) space:

According to surveys, 86% of institutions have already used or are considering stablecoins, 63% are interested in asset tokenization, and 61% believe tokenization will significantly change trading and payments in the next 3–5 years.

XRP faces two opposing forces: ETF decline and long-term fundamentals

In this context, XRP is in a “tug-of-war” between two factors:

The current price hovers around $1.40 and struggles to break out. However, market data shows leverage on Binance has fallen to its lowest since 2024, and open interest has been “reset” to lower levels.

Meanwhile, the spread between spot and derivatives volume has improved by about $315 million in recent days without an increase in leverage. This indicates the market is less “overloaded” compared to previous volatile phases.

Outlook

The next move for XRP will depend on two main factors:

If Ripple’s ecosystem and XRPL continue to attract real usage and capital, XRP could sustain long-term appeal even if short-term ETF momentum wanes.

Vương Tiễn