Canary Capital: XRP Tops BTC/ETH in ETF Inflows, Captures ~50% of New Altcoin ETF Capital
Canary Capital CEO Steven McClurg says XRP-focused ETFs have drawn steady inflows even on days when Bitcoin (BTC) and Ethereum (ETH) funds saw outflows, signaling a rotation of capital toward XRP. McClurg estimates XRP products capture roughly 50% of fresh capital entering altcoin ETFs, with Solana (SOL) and Hedera (HBAR) taking about 30% and 20% respectively. XRP ETFs saw continuous inflows from mid-November until their first outflow on January 7, 2026. Cumulative net inflows into XRP ETFs total $1.24 billion, with total AUM around $1.06 billion. Canary’s spot XRP ETF (XRPC) leads with about $280.38 million in net assets, narrowly ahead of Bitwise’s XRP ETF at $278.22 million. By contrast, BTC and ETH investment products recorded larger and more frequent outflows; in one recent week BTC and ETH products jointly lost $250 million while XRP drew $3.5 million. McClurg highlights XRP’s resilience on “red days” and growing investor preference for altcoins with utility. Disclaimer: informational only, not financial advice.
Bullish
Persistent and relatively large ETF inflows into XRP — even on days when BTC and ETH funds experience outflows — is a bullish signal for XRP price sentiment and demand. Key factors supporting this view: 1) Fund flows drive price: ETF inflows represent real, often institutional, demand that can create upward price pressure, especially given XRP ETFs’ cumulative $1.24B net inflows and $1.06B AUM. 2) Market rotation: McClurg’s claim that XRP captures ~50% of new altcoin ETF capital indicates concentrated buying versus more diffuse selling in BTC/ETH, which can amplify XRP’s outperformance. 3) Relative resilience on sell-offs: Inflows on “red days” suggest some investors view XRP as a defensive or tactical altcoin exposure, increasing its bid during volatility. 4) Leading products: Two large ETFs (Canary XRPC and Bitwise) concentrate assets, improving liquidity and visibility. Short-term impact: Expect positive price shocks on notable inflow days and reduced downside during market-wide sell-offs as ETF demand offsets outflows elsewhere. Volatility may increase around major flow announcements. Long-term impact: If flows persist, XRP could see sustained upward pressure, higher liquidity, and greater institutional adoption; however, total AUM remains modest versus BTC/ETH, so large-market moves still matter. Risks: flow reversals, regulatory shifts, or negative news could quickly reverse sentiment — similar to past altcoin rallies driven by ETF flows that later corrected when inflows stalled. Overall, the flow pattern is a bullish fundamental for XRP but subject to macro and crypto-specific risks.