Recently, the performance of XRP spot ETF has indeed attracted market attention. After 36 consecutive days of net capital inflow, on January 7th, this "hot favorite" suddenly reversed course, with five related funds simultaneously experiencing net capital outflows, totaling $40.8 million in a single day — this is also the first net outflow event since such ETFs were listed.

Seeing this data, many traders' first reaction is to ask: Is XRP going to fall? Is the market turning? Actually, there is a detail that is easily overlooked: a single day's net outflow does not equal a trend reversal.

There have been similar situations in the past. In 2024, the Bitcoin spot ETF experienced a significant single-day outflow of $438 million. At that time, the market was panicked, and public opinion was predicting a decline. But what happened next? It turned out to be just profit-taking by institutional investors. A few days later, funds flowed back in, and the price of the coin recovered.

The current situation with XRP ETF is basically following the same logic. The 36 days of continuous net inflow have already allowed many early participants to realize good gains. Cashing out and shifting to other promising opportunities is a normal portfolio rebalancing behavior, not a market bearish signal. From a broader perspective, ETF capital flows essentially reflect investors' sentiment changes and stage-wise position adjustments. Single fluctuations are hard to indicate any major issue. The key is to observe the trend of capital flows over the next few weeks, rather than obsessing over the figures of a single day.