The XRP market experienced a week of opposing forces, caught between significant institutional selling and positive legal and strategic developments from Ripple. This confluence of events created a complex landscape for the digital asset.
Legal Victory and Strategic Product Launch
On January 27, the U.S. Court of Appeals for the Ninth Circuit upheld the dismissal of a class-action lawsuit against Ripple Labs. The suit, initiated in 2018, had alleged that Ripple sold XRP as unregistered securities. The court ruled the federal securities claims were time-barred, noting XRP was first offered to the public around 2012–2013. This decision reinforces Ripple’s legal standing following its August 2025 settlement with the SEC, where both parties dropped their appeals and Ripple paid a $125 million penalty—far below the regulator’s initial $2 billion demand.
Operationally, Ripple introduced “Ripple Treasury” on January 28. This new platform for cash and digital asset management follows Ripple’s $1 billion acquisition of treasury provider GTreasury in October 2025. The system is designed to consolidate cash, stablecoins, and tokenized funds, with the aim of reducing cross-border settlement times from days to seconds using Ripple’s RLUSD stablecoin.
Looking ahead, the “XRP Community Day 2026” is scheduled for February 11-12. According to AMBCrypto, CEO Brad Garlinghouse and President Monica Long are expected to address institutional growth and plans concerning ETFs and ETPs.
Record ETF Outflows Weigh Heavily
Countering these positive strides was substantial selling pressure from the ETF sector. The primary catalyst was a major move by asset manager Grayscale. Data from SoSoValue indicates that on January 29, Grayscale withdrew $98.39 million from its XRP ETF holdings. This marked the largest single-day outflow in the token’s ETF history.
The impact was immediate and severe. These redemptions far outweighed inflows into other products. Net outflows across the entire market for that day totaled approximately $93 million. According to Benzinga, total spot ETF assets under management plummeted from $1.39 billion to $1.21 billion in a single session—a drop of $180 million.
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Key ETF Movements:
* Primary Driver: Record Grayscale redemptions ($98.39 million)
* Overall ETF Impact: Spot ETF assets fell by $180 million in one day
* Offsetting Inflows: Smaller, yet positive, inflows from other issuers
Inflows Prove Insufficient Against the Tide
The market picture was not entirely one-sided. Other ETF providers did see inflows. Data from AMBCrypto showed Canary (XRPC) and Bitwise attracting daily inflows of $2.10 million and $2.41 million, respectively. Franklin contributed an additional $972,760.
However, these amounts were negligible compared to the Grayscale withdrawal. Total daily outflows still stood at $92.92 million. On a weekly basis, net outflows summed to $69.05 million.
This event broke a notable streak. Since their launch in November 2025, XRP ETFs had recorded 35 consecutive trading days without a single redemption, according to Yahoo Finance. The shift in sentiment on January 29 is likely to remain a key short-term focus.
The price action reflected the pressure. XRP closed the week on Friday at $1.81, simultaneously marking a 52-week low. Its 14-day Relative Strength Index (RSI) reading of 28.8 placed it firmly in oversold territory.
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