XRP ETFs See Weekly Outflow as Binance Liquidity Hits 2020 Low
XRP spot ETFs had a $35,210 net outflow in the week ending May 1, ending three weeks of inflows; Binance’s 30-day XRP liquidity index fell to 0.038, lowest since 2020.
SoSoValue data show XRP spot exchange-traded funds recorded a $35,210 net outflow in the week ending May 1, ending a three-week run of inflows. The funds had taken in $82.88 million over the prior three weeks, including $55.39 million in the week of April 17. Cumulative net inflows into XRP ETFs stand at $1.29 billion, while reported weekly net assets fell to $1.06 billion.
Separately, an analyst tracking Binance order books reported the exchange’s 30-day XRP liquidity index dropped to 0.038, the weakest reading since 2020. The analyst, identified as Arab Chain, wrote the figure points to a “clear weakness in market depth.”
Arab Chain added that when market depth is thin, modest capital flows can move prices sharply and noted that XRP’s price has remained relatively stable so far. The analyst also wrote the decline in the liquidity index could reflect a gradual exit by large investors or reduced institutional trading activity.
XRP spot ETFs provide investors a way to hold the token through exchange-traded products rather than direct custody. Market participants track weekly ETF flows and exchange liquidity to assess institutional interest and trading conditions; lower liquidity on major venues means orders have fewer counterparties at current prices and trades can have larger price impact.
Observers will likely watch upcoming ETF flow figures and Binance liquidity readings for changes in buying activity or further shifts in market depth.
