XRP defies the trend with a net inflow of 38.1 million! Bitcoin and Ethereum experience a massive outflow of 750 million in a rush to escape

In the first week of 2026, Bitcoin and Ethereum ETFs evaporated $750 million, with BlackRock’s IBIT withdrawing $252 million in a single day. XRP experienced a contrarian net inflow of $38.1 million, with weekly trading volume reaching a new high of $219 million, doubling from the previous week. Ripple received approval from the UK FCA, holding the $2.10 support level, with a bullish flag pattern suggesting a test of $2.40.

XRP ETF Leads the Market, Bitcoin and Ethereum Face Institutional Selling

(Source: The Block)

At the start of 2026, the US crypto ETF market shows extreme polarization. Bitcoin ETFs experienced four consecutive days of outflows from January 6 to 9, with a weekly net outflow of $681 million. Although the week began strongly on January 5, attracting $697.3 million, four days of continuous outflows wiped out all gains. On January 7, a single-day outflow of $486.1 million was the largest of the week.

BlackRock’s industry-leading IBIT fund was hit hardest, with outflows of up to $252 million on January 9. Bitwise’s BITB fund also saw outflows of $5.9 million. Fidelity’s FBTC fund was a notable exception, with inflows of $7.9 million on the same day, but it could not reverse the overall trend of outflows. Currently, the total net assets of 12 spot Bitcoin ETFs amount to $116.9 billion, representing 6.48% of Bitcoin’s market cap, with a cumulative net inflow of $56.4 billion since their launch in January 2024.

Ethereum ETFs performed slightly better but remain pessimistic, recording a net outflow of $68.6 million this week. These funds started strong, with inflows of $168.1 million and $114.7 million on January 5 and 6 respectively, but the last three trading days saw a total outflow of $351.4 million, erasing those gains. On January 9, BlackRock’s ETHA fund saw outflows of $83.8 million, and Grayscale’s ETHE fund outflows of $10 million. Currently, nine spot Ethereum ETFs hold a total net asset value of $18.7 billion, accounting for 5.04% of Ethereum’s total market cap.

In stark contrast to Bitcoin and Ethereum ETFs, five spot XRP ETFs continued to attract funds during their initial trading phase. As of the week ending January 9, these funds recorded a net inflow of $38.1 million and reached a weekly trading volume of $219 million, the highest since their launch. This volume is nearly double the $117.4 million of the previous week and surpasses the record of $213.9 million set during the week of December 19, 2025. This milestone indicates that, despite the overall weakness in the crypto ETF market, institutional investors’ interest in XRP funds is growing.

XRP ETF Market Landscape and Capital Distribution

Canary Capital XRPC: $375.1 million in net assets, remains the leader

Bitwise XRP Fund: $300.3 million, close behind

Franklin Templeton XRPZ: $279.6 million, traditional giant enters

Grayscale GXRP: $271.2 million, Grayscale brand influence

21Shares TOXR: $246.9 million, European participation

Since its launch in mid-November 2025, XRP funds have accumulated net inflows of $1.22 billion, with total net assets reaching $1.47 billion, representing 1.16% of XRP’s market cap. Notably, SOL ETFs also saw net inflows this week, attracting $41 million during the first full trading week of 2026. Bitwise’s BSOL fund leads with a total net inflow of $648.1 million, while Fidelity’s FSOL fund ranks second with only $131.4 million.

UK FCA Approves to Pave the Way for XRP Compliance

Ripple recently obtained registration from the UK Financial Conduct Authority (FCA), enabling its UK subsidiary to conduct certain crypto-related activities under the country’s anti-money laundering framework. While this approval does not yet grant full financial services authorization, it marks an important step for the UK in integrating digital assets into its regulatory system.

This regulatory breakthrough has far-reaching implications for XRP. As a global financial hub, the UK’s regulatory stance sets an example for Europe and the world. FCA approval means Ripple can operate legally in the UK, laying a foundation for further expansion into the European market. For institutional investors, regulatory clarity is a prerequisite for allocating assets to cryptocurrencies, and FCA recognition will significantly reduce compliance risks.

For the market, such clarity is usually less impactful on short-term price surges but more important for strengthening long-term confidence during consolidation phases. After ending its lawsuit with the SEC in July 2025, XRP’s regulatory uncertainty has greatly diminished. FCA approval outside the US is another significant milestone, indicating XRP is gaining regulatory recognition worldwide.

Technical Analysis: Bullish Flag Pattern Gaining Momentum

(Source: Trading View)

XRP The current trading price is around $2.10, up approximately 0.24% in the past 24 hours, with price movement stable within a narrow consolidation zone. Daily trading volume approaches $1.12 billion. XRP remains the fourth-largest crypto by market cap, valued at about $127.5 billion. On the surface, this move seems uneventful, but market structure indicates it is digesting gains rather than losing momentum.

Since late December, XRP has been making new lows but remains above the ascending trendline. This pattern typically reflects controlled consolidation rather than trend exhaustion. From a technical perspective, the retracement after reaching near $2.40 forms a bullish flag rather than a reversal pattern. The price continues to stay above the support zone of $2.04–$2.06, which is very close to the 0.618 Fibonacci retracement level, often associated with trend continuation.

The 50-day and 100-day moving averages are flattening and converging around $2.10, indicating decreasing volatility. The candlestick patterns also support this view, with small-bodied candles and longer lower shadows repeatedly appearing, suggesting buyers are absorbing supply rather than retreating. Momentum indicators favor patience; RSI has rebounded from oversold territory and is now steady around the mid-50s, indicating increasing bullish pressure without signs of fatigue or bearish divergence.

The key resistance for XRP is at $2.15. A decisive break above this level could lead to further gains toward $2.27, and if momentum persists, a test of $2.40 again. As long as XRP remains above the upward trend support, the overall outlook leans toward continuation rather than distribution. Market shifts often occur when attention is lowest; with regulatory clarity and technical pressure quietly building, XRP’s consolidation phase may be laying the groundwork for its next expansion.