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Is the XRP ETF considered a "news dumping event"? The outflow of $15.5 million per week raises alarms.
In the first complete week of the XRP ETF era, investment products linked to XRP experienced an outflow of $15.5 million, setting a record for the largest weekly outflow since XRP returned to institutional rotation last year. This starkly contrasts with the $243 million inflow on the first day and the $58 million in volume, the latter being the highest opening price among all ETFs this year. Historically, the XRP ETP saw an influx of $2 billion in 12 months, during which XRP's price skyrocketed from $0.50 to $3.50, marking a rise of 700%. However, the recent outflow aligns with the overall $2 billion downward trend in the ETP market, mainly due to policy uncertainty and the dumping by native crypto investors. Investors seem to perceive the launch of ETFs as a 'sell on dips' event, and if this trend continues, further outflows could occur.