Fear returns to the crypto market: XRP funds see largest outflow since start

Investors are withdrawing en masse from crypto ETFs. Bitcoin, Ethereum and XRP are being hit hard, as price falls and interest rate fears weigh on market sentiment.

XRP price falls: largest outflow ever from ETFs

The US XRP exchange-traded funds (ETFs) recorded an outflow of $92.92 million yesterday. That is the highest amount since their launch in November 2025, according to figures from analysis platform SoSoValue.

The outflow coincides with a sharp decline in the price of XRP itself. In the past 24 hours, the coin lost 8.1 percent of its value. At the time of writing, the XRP price is at $1.75.

According to CoinGecko, XRP has reached its lowest level since December 2024. Since the all-time high of $ 3.65 in June, the digital currency has fallen almost 52 percent.

Bitcoin and Ethereum are also under pressure

Not only XRP funds are experiencing outflows. The US Bitcoin ETFs posted a combined loss of $817.8 million, the fourth largest day of outflows ever. Ethereum (ETH) funds saw $155.7 million disappear.

This negative trend coincides with a broader decline in the crypto market, with fears of tighter monetary policy making investors nervous.

Warsh nomination causes nervousness

A possible cause for the current sell-off is the increasing likelihood that Kevin Warsh will be appointed to succeed Jerome Powell as chairman of the Federal Reserve (Fed). Warsh is known for his strict stance on inflation and his criticism of loose monetary policy.

Anna Wong, chief economist at Bloomberg, pointed out to X last week that Warsh remained concerned about rising inflation even during the financial crisis. In the eyes of investors, that makes him a decidedly unfavorable candidate.

Macro analyst Alex Krüger says that Warsh sees productivity growth through artificial intelligence (AI) as a brake on inflation, which does offer room for significant interest rate cuts. At the same time, according to him, Warsh is strongly against quantitative easing (QE) and wants to significantly reduce the Fed’s balance sheet.

If Warsh’s policy ultimately amounts to a less loose monetary policy, it will mean less liquidity in the markets and therefore less capital for risky assets such as cryptocurrencies. Investors appear to be already preparing for this by reducing their positions.