The XRP spot ETF market showcased a dramatic display of institutional resilience this week, staging a robust recovery just 24 hours after enduring its most turbulent trading session since its historic listing in late 2025.
On January 29, 2026, the sector was rocked by a record single-day net outflow of $92.9 million. Market analysts identified the primary catalyst as a massive liquidation event within Grayscale’s GXRP fund, which accounted for the lion’s share of the exit. The sell-off initially sent shockwaves through the investor community, appearing to confirm the bearish sentiment that has plagued the broader crypto market recently.
The 24-Hour Turnaround
However, the narrative shifted abruptly on January 30. Defying the previous day’s exodus, net inflows roared back to $16.79 million. Accompanying this capital return was a significant surge in activity, with daily trading volume climbing from $2.15 billion to $2.23 billion.
This rapid “V-shaped” recovery in fund flows is particularly striking given the bleak technical backdrop for the underlying asset. Over the past seven days, the price of XRP has plummeted by more than 11%, currently struggling to maintain support levels as the “Fear & Greed Index” for the broader market tilts heavily into “Fear” territory.
Market Summary: Jan 29 – Jan 30, 2026
| Metric | Jan 29 (Peak Outflow) | Jan 30 (Recovery) | Trend |
| Net Fund Flow | -$92.9 Million | +$16.79 Million | 🟢 Rebound |
| Trading Volume | $2.15 Billion | $2.23 Billion | 📈 Increasing |
| 7-Day Price Change | -11.4% | -11.2% | 🔴 Bearish |
| Market Sentiment | Fear | Fear | ⚠️ Static |
Bullish Divergence: A Bottom in Sight?
The disconnect between falling prices and rising ETF inflows—often referred to as a bullish divergence—has caught the attention of institutional desks.
“When you see record outflows followed immediately by rising volumes and net positive inflows while the price is still suppressed, it suggests a ‘clearing of the decks,'” noted one senior market strategist. “The Grayscale liquidation appears to have been a forced or strategic exit rather than a reflection of diminishing long-term appetite.”
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Industry experts suggest that this “structural buying” indicates that large-scale investors are viewing the current price dip as a prime entry point. If the ETF inflows continue to stabilize despite the prevailing market anxiety, it could signal that XRP is carving out a definitive local bottom, setting the stage for a potential trend reversal as February begins.
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