US spot XRP ETFs see $10.42 million net outflow led by Bitwise

US spot XRP exchange-traded funds recorded net outflows totaling $10.42 million on November 9, signaling declining investor interest in these products. The withdrawals occurred as Ripple, the company behind the XRP token, continues to expand its presence in the institutional banking and custody sectors.

Bitwise dominates outflows as fund assets shrink

On November 9, Bitwise’s spot XRP ETF accounted for the vast majority of outflows, withdrawing $9.397 million. Canary Capital’s XRPC fund followed with $811,400 in redemptions, while 21Shares’ TOXR fund also registered smaller declines. The latest reduction comes after a period during which US spot XRP ETFs saw little movement, with several consecutive sessions marked by stagnant flows.

Roughly 90% of net outflows were concentrated in Bitwise’s ETF, reflecting a sharp drop in investor confidence.

Bitwise Institutional Asset Management LLC, a major US digital asset investment firm, has historically attracted the most capital among US spot XRP products. Its XRP ETF uses Coinbase Custody for asset safekeeping, and BNY Mellon as administrator.

After the latest withdrawals, Bitwise’s cumulative net inflows dropped to approximately $672 million.

Across all five tracked US spot XRP ETFs, net inflows stand at $1.798 billion, while combined net assets have decreased to $1.238 billion. The decline in net assets reflects not only fund redemptions but also the impact of XRP’s falling market price. Earlier this month, investor losses widened further as the token experienced continued weakness.

Ripple’s banking push meets weak investor response

The ETF outflows follow Ripple’s intensified efforts to strengthen its institutional financial services. In October, Ripple received final federal trust bank approval, permitting its national trust bank to operate under the supervision of the Office of the Comptroller of the Currency (OCC).

The company also expanded its partnership with Bank of New York Mellon (BNY Mellon), which now provides custody services for XRP and RLUSD for institutional clients.

These advancements boost Ripple’s access to regulated financial infrastructure. However, increased capabilities in custody, stablecoin payments, brokerage, and treasury management do not automatically translate into demand for XRP investment products.

The disconnect between Ripple’s business developments and investor sentiment was evident in October when XRP’s price fell 16% despite multiple banking approvals and new partnerships.

Currently, XRP is trading near $1.10, struggling to recover amid a wider downturn in the cryptocurrency market.

Institutional redemptions in spot XRP ETFs reduce fund holdings, but do not always result in immediate sell pressure on public digital asset exchanges. The pace and impact of redemptions depend on the specific fund structure and the actions of authorized participants.

Past inflows into XRP ETFs showed that institutional buying alone did not shield the token from broader market trends or price declines.

Mini dictionary: Office of the Comptroller of the Currency (OCC) is a US federal agency that regulates and supervises national banks and federal savings associations to ensure their safety, soundness, and compliance with banking laws.

Ripple’s recent expansion in banking and custody services has not reversed weak investment flows in US spot XRP ETFs, highlighting a gap between institutional developments and actual market demand for $XRP products.