Why does the XRP ETF funding fluctuate dramatically, from 53.32 million outflows to 2.09 million inflows?

The recent funding dynamics of the US XRP spot ETF have been somewhat “restless.” Yesterday (January 22, Eastern Time), it saw a single-day net inflow of $2.09 million. Behind this seemingly stable figure, however, lies the truth of recent significant capital fluctuations. Reviewing the past three days’ data, from a large outflow two days ago, to a rebound the day before, and then to continued inflows yesterday, these sharp fluctuations reflect rapid changes in market sentiment.

The Truth Behind Recent Volatility in Funding

According to the latest news, the capital flow of XRP spot ETF has experienced noticeable fluctuations in recent days. Specifically:

This degree of fluctuation is indeed noteworthy. The large outflow two days ago may be related to market sentiment swings, while the subsequent continuous inflows suggest capital is gradually returning.

Ongoing Performance of Individual Products

It is worth noting that Franklin XRP ETF XRPZ has shown a stable inflow trend recently. The net inflow of $2.09 million yesterday continued this trend, with the product’s total net inflow reaching $293 million. In contrast, the large outflow of $55.39 million from Grayscale GXRP on January 20 forms a stark contrast.

This divergence among products may reflect differing investor preferences for various ETF offerings.

Overall Scale and Market Foundation

As of press time, the total net asset value of XRP spot ETF stands at $1.37 billion, with a cumulative net inflow of $1.23 billion. While this scale isn’t particularly large, it has already established a relatively stable market foundation. The XRP net asset ratio remains at 1.17%, indicating that market acceptance of XRP spot ETF is gradually increasing.

Price and Capital Dynamics Dislocation

Interestingly, there is a dislocation between XRP’s price performance and the ETF’s capital flow. According to related information, XRP’s current price is $1.91, down 1.98% in the past 24 hours, and down 8.02% over the past 7 days. This means that even as the price faces pressure, XRP spot ETF continues to see inflows, possibly reflecting that institutional investors’ medium- to long-term outlook on XRP remains relatively stable.

Summary

The recent fluctuations in XRP spot ETF’s capital flow reflect rapid shifts in market sentiment. However, the overall trend shows that inflows still dominate. The sustained inflow into Franklin XRPZ, steady growth in total scale, and continued capital inflows despite price declines all suggest that the market’s demand for XRP spot ETF remains relatively stable. Nonetheless, this volatility also reminds us that short-term changes in capital flow may continue, and close attention should be paid to the flow changes of major products like Grayscale GXRP.