XRP spot exchange-traded funds recorded a net outflow of roughly $35,210 in the week ending May 1, snapping a three-week run of net inflows that had totaled $82.88 million. The reversal comes as the token's liquidity on Binance slid to its lowest level in more than four years.
Outflow Ends Inflow Streak
In the prior three weeks, XRP ETFs had attracted steady capital. The week of April 17 saw net inflows of $55.39 million, the strongest since mid-January. That brought cumulative net inflows since launch to $1.29 billion. But the latest week flipped the trend, with a small but symbolic net withdrawal.
Weekly net assets for the funds slipped to $1.06 billion, down from the previous week's level. The outflows, while modest compared with the overall pool, mark the first time investors have pulled money out since early April.
Liquidity Hits Lowest Since 2020
Separate data shows XRP's liquidity index on Binance fell to 0.038, the lowest since 2020. The metric, which measures market depth, suggests that even moderate capital inflows could cause sharp price swings.
One analyst described the drop as “clear weakness in market depth,” adding that the thin order books make the token more vulnerable to volatility. The decline may also reflect reduced institutional trading activity or a gradual exit by large holders, increasing overall market fragility.
Price Holds Steady Despite Weak Depth
Despite the liquidity squeeze, XRP's price action has remained relatively stable. Traders and analysts have characterized the period as a transition or consolidation phase, where price holds but underlying conditions are shifting.
The combination of falling liquidity and a pause in ETF inflows has raised questions about near-term demand. With fewer large orders needed to move the market, any fresh catalyst — regulatory news, a broader crypto rally, or another shift in institutional sentiment — could trigger outsized moves.
For now, the $1.06 billion in ETF assets remains a sizable base, but the outflow and liquidity data suggest the market is more fragile than the calm price action implies.
