XRP Exchange-Traded Funds (ETFs) are on track for their first monthly net outflows since their debut in late 2025, breaking the momentum that made them one of crypto’s strongest early product launches outside of Bitcoin.
Facts from SoSoValue showed that the four funds recorded $28 million in net redemptions this month. This is also confirmed by CoinShares factsIt shows that XRP-linked global funds were the worst-performing asset class in March, with net outflows of $130 million.
The turnaround comes after a launch phase that pushed cumulative net inflows to around $1.2 billion in four months, a pace that has helped make XRP one of the more closely watched altcoin ETFs outside of Bitcoin and Ethereum.
A negative month after that start does not in itself mean that the institutions have moved on. However, it shows that demand for launches has waned and the next phase of trading will need support from something deeper than the enthusiasm of the first wave.
The money flows are cool, but the institutional case is still alive
Still, softer rates in March haven’t erased the broader institutional footprint around the product category.
In an SEC submitGoldman Sachs disclosed more than $152 million in exposure across four spot XRP ETFs, giving the token a level of traditional financial sponsorship that many altcoins still lack.
Furthermore, ETF outflows in March do not reflect the full extent to which asset managers, banks, custodians and trading firms are positioning themselves around the token or the network behind it.
The available data shows that the broader picture remains constructive. In January 2026 questionnaire by Coinbase and EY-Parthenon of 351 institutional investors with influence over allocation decisions, 18% of respondents were already allocated to XRP, and 25% planned to add it by 2026.
More broadly, 73% said they plan to increase digital asset allocation this year, while 65% of those planning to increase exposure cited greater regulatory clarity and confidence in compliance frameworks as key drivers.
The report found that institutional investors are placing more weight on regulated vehicles, custody, trading capabilities and tokenization infrastructure than a year ago.
EY and Coinbase say 69% of respondents plan to prioritize trading opportunities over the next two years, while 76% of asset owners and asset managers prioritize custody.
At the same time, regulatory compliance and security also rose in importance as companies evaluated their custody partners.
This backdrop leaves room for continued demand for XRP even as ETF subscriptions cool. It shows institutions moving from first-wave beta exposure to second-wave infrastructure decisions that would shape their long-term conviction about a token.
Ripple is expanding deeper into the institutional stack
That distinction is important because in the past year Ripple has expanded its role well beyond just a single payment story.
The company’s current offerings now include payments, custody, stablecoins, treasury instruments and prime brokerage, giving institutions more entry points into the XRP and XRP Ledger (XRPL) ecosystems than just a spot ETF.
Ripple said the $1 billion acquisition of GTreasury was aimed at deepening its presence in corporate finance, while Ripple Prime, the company formed from the Hidden Road acquisition, provides institutional clients with prime brokerage, clearing and financing for digital assets including XRP and RLUSD.
That makes an XRP’s price exposure more layered than the ETF numbers suggest. An outflow of listed products in March could occur as Ripple looks to capture a larger share of the institutional transaction chain, from execution and custody to treasury operations and collateral management.
In that model, XRP’s value is less tied to a single monthly fund flow print and more tied to whether the surrounding network is sustainable, regulated, and continues to attract enough usage to support real volume.
Ripple has also continued to implement this strategy in its licensing efforts in jurisdictions including Luxembourg, the United Kingdom and, more recently, Australia. The company says it is licensed in more than 70 jurisdictions and its payments product has processed more than $100 billion in transactions.
XRPL’s tokenization push gives institutions another reason to stay involved
Meanwhile, the XRPL network itself is also being repositioned for a more compliance-heavy institutional market.
XRPL now has compliance tools, real-time settlement and programmability at the asset layer, live on the mainnet. These tools, which include authorized domains and an authorized DEX, are intended to create regulated environments where access can be controlled through credentials and compliance checks.
Notably, Ripple has consistently maintained that XRP remains central to that design through transaction fees, reserve requirements and its role as a bridge asset in currency and credit flows.
Interestingly, XRPL’s growing tokenization footprint adds another layer to why institutional interest in XRP remains high.
Data from RWA.xyz shows that XRPL has broken into the top 10 chains for real-world assets and has already recorded more than $1 billion in monthly stablecoin volumes. The network also features a growing list of institutional issuers and partners, including Ondo Finance, OpenEden, Archax and Société Générale-FORGE.
These developments correspond with what institutions say they want. EY and Coinbase found that 86% of respondents already use or are interested in using stablecoins, with T+0 settlement and internal cash management among the top use cases.
The survey also shows that investor interest in tokenized assets has risen to 63%, while 61% expected tokenization to have a significant impact on trading, clearing and settlement over the next three to five years.
XRP is now between weaker ETF momentum and a cleaner market setup
Against that backdrop, XRP finds itself in an interesting position, with ETF momentum weakening but the institutional case for the broader Ripple and XRPL stack continuing to grow.
Data from CryptoSlate shows that XRP price action reflects that tension. XRP was trading around the $1.40 level, with attempts to move higher.
At the same time, data from CryptoQuant showed that Binance’s estimated leverage ratio for XRP had fallen to 0.134, the lowest figure since 2024, while the token’s open interest was set lower.
Meanwhile, XRP’s spot and perpetual cumulative volume delta has improved by about $315 million over the past two days without a major expansion in leverage. This combination suggests a less crowded derivatives market than the one that fueled previous swings.
For XRP’s progress, any upward price movement may depend on whether the ETF slowdown proves to be temporary or whether the broader institutional build becomes more evident in trading volumes, liquidity and secondary market demand.