The US-listed XRP spot ETF experienced a noteworthy turning point on Wednesday — recording approximately $40.8 million in net outflows. While this number may seem small, the significance lies in the fact that this is the first negative result after 36 consecutive trading days of inflows.

In terms of scale, this outflow accounts for less than 3% of the total $1.25 billion inflow since its launch in November last year, so from a structural perspective, the impact is actually limited. The real question is what caused this change.

The major driver is the significant appreciation of XRP. In just one week, the price surged from about $1.80 to $2.40, a move that often triggers profit-taking among investors. When people make profits, they tend to cash out, which is a normal market behavior. More broadly, this correction coincides with a broader market pullback, so it’s not necessary to over-interpret — this is more of a natural rebalancing after a rally rather than any major negative news.

From an on-chain data perspective, XRP’s fundamentals remain solid. The token holdings in exchange wallets are at historical lows, and trading volume remains high, indicating that actual market demand has not diminished. Many analysts believe that once ETF capital inflows restart, XRP could test higher price levels, especially around the key $3 region.

It’s worth noting that XRP is not an isolated case of outflows. Bitcoin spot ETFs have also experienced significant redemption waves during the same period. This further confirms a general market adjustment: the underlying driver is widespread profit-taking, not a problem specific to any single asset.