Key takeaways
- XRP ETFs record $10.42 million in daily withdrawals
- Bitwise accounts for nearly 90% of reported outflows
- Ripple's banking expansion has not prevented weakening ETF demand
US spot XRP exchange-traded funds recorded approximately $10.42 million in net outflows on November 9, marking a sharp deterioration in investor demand even as Ripple continues expanding its institutional banking and custody operations.
According to November 10 reporting based on SoSoValue ETF data, Bitwise's XRP ETF led withdrawals with $9.397 million, followed by Canary Capital's XRPC with approximately $811,400. The remaining reported redemptions came from 21Shares' TOXR fund.
The selloff represents a significant change from the recent period of stagnant ETF flows, when several consecutive sessions produced little or no fresh investment activity despite Ripple's institutional expansion.
Bitwise Leads XRP ETF Withdrawals as Fund Assets Shrink
The November 9 withdrawals were heavily concentrated in Bitwise, which accounted for roughly 90% of the reported net outflows.
Bitwise's fund has historically attracted the largest share of capital among US spot XRP products. Its custody structure uses Coinbase Custody to safeguard XRP, while BNY Mellon provides administrative services.
The latest redemptions reduced Bitwise's cumulative net inflows to approximately $672 million.
Across the five tracked US spot XRP ETFs, cumulative net inflows stood near $1.798 billion, while combined net assets declined to approximately $1.238 billion.
The difference reflects more than withdrawals. XRP's declining market price has reduced the value of existing holdings, extending the estimated investor losses identified earlier this month.
Ripple's Banking Expansion Fails to Reverse ETF Weakness
The withdrawals come despite Ripple strengthening its institutional financial infrastructure throughout October.
Ripple received final federal trust bank approval, allowing its national trust bank to operate under Office of the Comptroller of the Currency supervision.
The company also expanded its relationship with BNY, which now supports XRP and RLUSD custody for institutional customers.
Those developments strengthen Ripple's access to regulated financial infrastructure but do not automatically generate demand for XRP investment products.
Ripple's commercial operations include stablecoin payments, custody, brokerage and treasury services. Several can expand without requiring institutions to accumulate substantial quantities of XRP.
This distinction became evident when XRP fell 16% in October despite a series of banking approvals and partnership announcements.
What Do the Outflows Mean for XRP Price?
The latest redemptions arrive as XRP struggles near $1.10 following a broader cryptocurrency market correction.
An ETF redemption can reduce fund holdings, but it does not necessarily translate into an equivalent immediate sale on public cryptocurrency exchanges. The outcome depends on the product's redemption structure and authorized participant activity.
Previous XRP ETF inflows demonstrated that institutional accumulation alone could not prevent price declines.
