XRP kicked off January 2026 with a sharp burst of relative strength, rising roughly 24–25% in the first week—well ahead of Bitcoin’s 5.5–6% and Ether’s 9.7–10% over the same window. The move wasn’t just “risk-on” beta: it was powered by XRP-specific ETF demand, a cleaner regulatory backdrop for Ripple, and liquidity conditions that made the market more sensitive to steady buying.
For operators, treasuries, and compliance teams, the takeaway is operational as much as financial. When liquidity concentrates and regulatory signals improve at the same time, relative performance can shift fast—even among the largest assets.
WATCH: CNBC SAYS "THE HOTTEST CRYPTO TRADE OF THE YEAR IS NOT BITCOIN, IT IS NOT ETHER, IT IS $XRP." pic.twitter.com/moYcx3OtG0
— The Wolf Of All Streets (@scottmelker) January 6, 2026
ETF Demand Concentrated the Bid
U.S. spot XRP ETFs posted strong momentum right out of the gate. Inflow since New Year’s Day approached $100 million, lifting cumulative inflows to about $1.15 billion, with no net outflow day during that stretch. On certain days, inflows into XRP products reportedly ran multiples higher than flows into Bitcoin and Ether products. That kind of steady, one-directional buying can become the market, especially when the available float isn’t deep.
Mechanically, this created a demand shock. Large ETF purchases pushed buy pressure into a smaller on-exchange supply pool, which increased price sensitivity to continued inflows and to any large-holder distribution hitting the tape. In markets like this, flows stop being “a factor” and start becoming “the driver.”
Legal De-Risking and Liquidity Tightness Fed the Move
Participants also treated Ripple’s legal progress as a de-risking signal. The partial resolution of the SEC case and expanding commercial partnerships were framed as reducing legal tail risk that had previously limited institutional sizing. Alongside that, broader compliance frameworks and reporting regimes were referenced as part of the institutional context. The net effect was a shift in comfort level: more buyers willing to act, with fewer reasons to stay sidelined.
On-chain and technical signals reinforced the setup. Whale activity increased, exchange balances were described as lower, and technical studies highlighted a rare Ichimoku breakout on XRP/BTC not seen since 2018. The XRP Ledger crossing 4 billion transactions was also cited as a utility marker tied to cross-border settlement narratives. Put together, these inputs tightened sell-side liquidity and made upside moves sharper once buying pressure accelerated.
What This Means for Operations and Risk Controls
When demand comes through concentrated institutional products, the risks change shape. Reduced exchange liquidity increases price impact for large trades and raises slippage risk, especially during momentum bursts. Custody and reporting burdens rise too. Sustained ETF inflows increase the importance of segregated custody and precise flow reporting for trustees and service providers. Surveillance also has to adjust. Spikes in whale activity can force higher sensitivity around unusual trading and distribution patterns, even when the move is flow-driven rather than manipulation-driven.
For treasury and trading teams, governance becomes a first-class concern. Rapid concentration and fast repricing require contingency plans for execution, liquidity buffers, and clearer escalation paths when flows dominate market structure. In short: when ETFs are the marginal buyer, the market can reprice faster than internal controls are used to.
Market’s checklist is simple: do the flows persist, does Ripple’s regulatory narrative continue to improve, and do exchange balances stay tight? Those variables will decide whether the early-January surge becomes a durable market-structure shift or fades once the flow impulse cools. For compliance and custody teams, the lesson is immediate. Reporting, liquidity governance, and market-abuse controls need to assume that concentrated institutional demand can reprice an asset quickly—not gradually.
