Despite strong inflows into XRP ETFs, Ripple’s price fell below $1.55 before recovering slightly, highlighting ongoing volatility in the crypto market. Investor behavior has diverged across crypto ETFs, with Bitcoin funds continuing to see net outflows while XRP products outperformed their peers. Heightened geopolitical tensions, market uncertainty, and the partial reopening of the US government have influenced trading patterns and investor sentiment.
Data from SoSoValue shows that spot Bitcoin ETFs have struggled over the past several weeks. February 2 was a rare exception, with $560 million entering the funds, but the previous business week saw $1.4 billion withdrawn. February 3 was another difficult day, with $272 million in outflows. For the first time in 18 months, BTC ETF investors’ holdings have fallen below the average cost basis of accumulated Bitcoin, reflecting the prolonged bearish pressure.
By contrast, ETFs tracking other large-cap altcoins performed better. Spot Ethereum ETFs attracted $14.06 million in net inflows, while SOL funds gained $1.24 million. XRP products led the market, with $19.46 million flowing into the funds, more than all other crypto ETFs combined. This was the largest daily inflow for Ripple ETFs since January 5, when $46.10 million entered. Cumulative net inflows into XRP ETFs now total $1.20 billion, slightly below the $1.26 billion peak recorded before the January 29 market crash.
Ripple’s price remained highly volatile during the trading day. Bitcoin fell to a yearly low of $73,000 before rebounding above $76,000, while XRP dropped to $1.53, surged to $1.63, and settled at $1.60. The token is down nearly 17 percent over the past week and 25 percent over the past month. Since reaching a high of $2.40 on January 6, XRP has struggled to maintain momentum, failing to establish a sustainable recovery despite strong ETF inflows and growing interest from institutional investors.
The performance of XRP ETFs demonstrates that investor demand for the token can remain robust even when spot prices face significant pressure. Analysts suggest that while ETF inflows can provide short-term support, the broader market and macroeconomic uncertainties will continue to influence XRP’s price trajectory in the near term.
