XRP ETFs Bleed $28M as Institutional Investors Exit

XRP ETFs Record $28M in Weekly Outflows

Spot XRP exchange-traded funds (ETFs) experienced a significant negative net outflow session on Monday, March 16, extending a bearish trend for institutional investment products. For the week ending March 13, these funds registered a total net outflow of $28 million, a dramatic increase from the $4 million withdrawn the week prior. The selling pressure continued for a fourth consecutive session into Tuesday, though the pace of redemptions eased to $3.9 million.

This marks the second straight week of negative flows for XRP ETFs, indicating cooling demand from institutional players. Cumulative inflows since launch stand at $1.21 billion, with total assets under management (AUM) declining to $984 million. The consistent outflows contrast with recent inflows into Bitcoin and Ethereum ETFs, suggesting a specific shift in sentiment away from XRP among large-scale traders.

Retail Accumulates as Institutions Divest

A clear divergence has emerged between institutional and retail market participants. While ETFs, a proxy for institutional sentiment, show consistent selling, retail interest appears to be providing a floor for the token's price, which held above $1.47. The Crypto Fear & Greed Index rose from a low of 8 to 23, signaling a slight improvement in market mood, though it remains in the "Extreme Fear" category.

Further evidence points toward retail accumulation. According to CryptoQuant data, the net volume of XRP moving on and off exchanges has fallen to historic lows. Analysts suggest this trend indicates investors are transferring tokens to external wallets for long-term holding. This view is supported by 13F filing data, which shows only 15.9% of XRP ETF assets are held by reporting institutions, confirming the product's primary reliance on retail demand.

Goldman Sachs Revealed as Top Holder Despite Trend

In a surprising counter-signal to the recent outflows, regulatory filings from December 31 revealed Goldman Sachs as the largest single holder of XRP ETFs. The investment bank held approximately $154 million in the products, a position that dwarfs holdings from other institutions like Millennium Management ($23 million) and Logan Stone Capital ($5.3 million). This significant, albeit dated, position shows that major financial players have built foundational exposure to XRP.

Looking forward, technical analysts note that XRP's current price structure resembles its 2017-2018 cycle, which preceded a 1,577% rally. For a similar scenario to unfold, the price must break through a dense supply band and a key technical resistance zone between $1.78 and $2.30. This area remains a critical hurdle for confirming any long-term bullish reversal.