XRP ETF Posts $6M Outflow While Bitcoin ETFs Attract Inflows
U.S. spot XRP exchange-traded funds posted a net outflow of $6.0806 million in a single day, extending a withdrawal streak that has drained over $44 million from the funds since early March. The selling contrasts sharply with Bitcoin ETFs, which absorbed $115 million in a single session this week as institutional capital gravitates back toward the original cryptocurrency.
WHAT TO KNOW
- XRP spot ETFs have shed roughly $44.76 million since March 5, though cumulative inflows since launch remain at $1.24 billion across seven funds.
- Bitcoin ETFs reversed five months of outflows in March, pulling in nearly $700 million and widening the institutional preference gap over altcoin products.
March Outflows Hit $44.76 Million Across Seven XRP Funds
The $6.08 million withdrawal adds to a pattern of persistent redemptions that began March 5. CoinGlass data shows seven U.S. XRP spot ETFs now manage approximately $1 billion in assets, with 784.6 million XRP tokens locked.
The heaviest single-day outflow this month hit $18.11 million on March 9, marking the third consecutive day of net withdrawals. On March 6, 21Shares Core XRP Trust led outflows with $10.60 million, followed by Bitwise XRP ETF at $3.65 million and Grayscale XRP Trust at $2.37 million.
Despite the March selling, cumulative net inflows since the funds launched remain at $1.24 billion. The $44.76 million withdrawn represents roughly 3.6% of total inflows, a modest pullback relative to the asset base.
The broader crypto Fear & Greed Index sat at 15 on March 13, deep in “Extreme Fear” territory. That reading has held below 20 for the past month, reflecting sustained risk aversion across digital asset markets.
Bitcoin ETFs Absorb $700M in March While Altcoin Products Bleed
The divergence between Bitcoin and XRP ETF flows underscores where institutional conviction lies during periods of stress. U.S. spot Bitcoin ETFs attracted roughly $700 million in March, ending a five-month streak of withdrawals that had drained $3.8 billion from the products since October 2025.
On a single day this week, Bitcoin ETFs logged $115 million in net inflows, with BlackRock’s IBIT leading allocations. The return of institutional capital to Bitcoin, rather than altcoin products, reinforces a pattern seen across multiple ETF volatility cycles. When fear rises, money flows toward the asset with the deepest liquidity and longest track record.
XRP traded at $1.41 at press time, up 2.54% over 24 hours but still 62% below its all-time high of $3.65 reached in July 2025. Roughly 60% of XRP holders remain underwater at current prices, creating persistent break-even selling pressure near the $1.44 level.
$738 Million in Exchange Outflows Contradicts ETF Selling
While ETF investors pulled capital, on-chain data tells a different story. On March 10, $738 million worth of XRP was withdrawn from major exchanges, a move typically associated with long-term holders transferring tokens to cold storage.
The divergence between ETF outflows and exchange withdrawals suggests two distinct groups acting in opposite directions. Institutional investors trimming regulated ETF exposure appear to be selling into accumulation by larger holders who prefer direct custody, a dynamic that previously supported XRP sentiment during earlier capital rotations.
Bitcoin Network Fundamentals Hold at 944 EH/s
Bitcoin’s network health provides context for the institutional preference shift. Hashrate stands at approximately 944.5 EH/s, near all-time highs, with network difficulty at 145 trillion. Miners continue committing hardware despite compressed revenue margins.
Transaction fees on Bitcoin’s base layer sit at 3 sat/vB for priority confirmation, reflecting low mempool congestion. Record-high hashrate paired with minimal fee pressure signals a healthy, uncongested network, the kind of stability institutional allocators weigh when choosing between Bitcoin and altcoin exposure.
Bitcoin itself traded at $71,967, supported by the ETF inflow reversal and steady corporate treasury accumulation including MicroStrategy’s recent 1,360 BTC purchase disclosed in an SEC filing.
Outlook: Redemption Pace Slows, but Macro Headwinds Persist
The $6.08 million outflow is notably smaller than the $18.11 million and $16.62 million withdrawals recorded earlier in March, suggesting the pace of XRP ETF redemptions may be decelerating. Cumulative inflows of $1.24 billion across seven funds indicate the XRP ETF complex retains a substantial capital base.
Macro headwinds persist. Crude oil prices above $100 per barrel have driven broad risk-off positioning across speculative assets. With the Fear & Greed Index stuck in “Extreme Fear” below 20 for an entire month, a sustained reversal in ETF flows likely requires a catalyst beyond price stabilization alone.
For Bitcoin, the network tells a clearer story. Hashrate at 944 EH/s, fees near historic lows, and the return of ETF inflows suggest the protocol’s core value proposition continues to attract capital that altcoin products struggle to retain. Scarcity, decentralization, and growing institutional adoption remain Bitcoin’s distinguishing fundamentals.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
