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Amid the growing acceptance of virtual assets within the institutional financial market, the spot XRP ETF, which had drawn strong expectations, recorded its largest fund outflow of the month as market volatility expanded, revealing weakened investor sentiment.
According to a March 7 (local time) report by U.Today citing data from digital asset analytics platform SoSoValue, spot XRP ETFs posted a total net outflow of $16.62 million over the past six trading days. This marks the largest single-day outflow recorded in March. U.Today reporter Caroline Amosun analyzed that as XRP prices underwent a correction amid broader crypto market volatility, losses continued in ETF-based investment products as well.
Institutional investors maintained a cautious stance and began pulling funds rather than interpreting the recent rebound in the crypto market as a bullish signal. The outflows were particularly concentrated during a period when XRP fell about 3% in a single day and remained in bearish territory. XRP is currently trading at $1.37, down 2.08% from 24 hours earlier. Despite the recent outflows marking the highest level in the past two months, the cumulative net inflow into spot XRP ETFs since launch remains solid at $1.24 billion.
Most of the outflows occurred in funds managed by major asset managers. 21Shares’ XRP ETF, ‘AXRP,’ saw the largest withdrawal of $10.6 million, while Bitwise’s ‘BITB’ experienced $3.65 million in outflows. Grayscale’s related product also recorded $2.37 million in fund withdrawals. Meanwhile, funds managed by Canary and Franklin Templeton saw no significant capital movement during the trading session, suggesting that investors are maintaining a wait-and-see approach amid mixed market conditions.
Experts interpret the trend as a result of a more defensive institutional stance toward relatively volatile altcoin-based ETFs, as price movements of market leaders such as Bitcoin (BTC) and Ethereum (ETH) remain unstable. In particular, the significant outflows from 21Shares are seen as a signal that large institutions are reshaping their portfolios for risk management purposes. After the explosive inflows seen at launch, the spot XRP ETF market has now entered a phase where it is directly exposed to sober market evaluations and shifts in the macroeconomic environment.
Whether the institutional fund withdrawals will remain a temporary correction or signal a longer-term exodus depends on Bitcoin’s ability to establish support at $70,000 and the resolution of regulatory uncertainties surrounding Ripple. Although the XRP Ledger ecosystem continues its technological growth, restoring market trust is an urgent priority to prove its stability as an institutional financial product. Investors should respond cautiously to market changes while closely monitoring capital flows in major funds and XRP’s defense of key support levels.
Disclaimer: This article is provided for investment reference purposes only and we are not responsible for any investment losses resulting from its use. The information should be interpreted solely for informational purposes.