XRP recorded outflows of $16 million between November 10 and 17, 2025, part of a larger exodus that drained $2 billion from crypto funds during the week. According to reports, the wave of selling was attributed to regulatory uncertainty and shifts in institutional perception, coinciding with pressure on liquidity and large redemptions from institutional vehicles. The decline also overlapped with spot Bitcoin ETFs losing about $1.6 billion in the same period, intensifying stress across major assets.
The week closed with a net negative capital movement not limited to XRP, as the crypto market suffered a broader liquidation that, since October 7, wiped approximately $1 trillion in cumulative value. Bitcoin fell below $106,000 and triggered $1.2 billion in liquidations, while Ethereum also recorded significant plunges, reinforcing the depth of the downturn. In parallel, spot Bitcoin ETFs suffered redemptions of around $1.6 billion, which intensified pressure on prices and liquidity across the market.
Market Structure Under Stress
The XRP dynamics unfolded in several stages that reflected worsening market conditions: initial 3 to 4 percent pullbacks following the launch of ETF products tied to the token, a 5 percent correction driven by profit-taking, and drops of up to 17 percent during episodes of market panic. On-chain data also revealed an accumulation anomaly of roughly $716 million, together with off-exchange movements of around $300 million in XRP, which are signals often associated with strategic accumulation by large holders. A corporate treasury firm also disclosed $78 million in unrealized losses, highlighting the volatility weighing on institutional portfolios.
Regulatory uncertainty intensified the shock. The U.S. Securities Commission withdrew delay notices on several altcoin ETFs, including Solana, XRP, and Hedera, even though the Ripple litigation remains ongoing. There is an appeal over a $125 million ruling and restrictions on institutional XRP sales remain in force. This conflicting regulatory environment has created a landscape where potential approvals coexist with major legal constraints, complicating risk assessments. The mixed signals have increasingly influenced institutional trading behavior, particularly among firms with large exposures.
The combination of heavy outflows, pressure related to ETFs, and unresolved regulatory disputes may result in lower liquidity and heightened implied volatility, which raises the cost of holding XRP for institutional managers. These effects become more pronounced as fund flows interact with legal developments, shaping broader market stability.
The episode underscores that the institutional normalization of assets like XRP continues to depend on the interplay between regulatory clarity and capital flows. The next stage will be defined by upcoming legal outcomes for Ripple and by how managers and investors respond to new policy signals.
