XRP Funding Rates Hit One-Year High as ETFs Bleed $10.4M

XRP funding rates on Binance climbed to their highest level in over a year even as the token fell into a 30% correction, signaling a crowded bullish derivatives position against a sliding spot market. Spot XRP ETFs recorded $10.4 million in outflows, underscoring weak institutional demand alongside the leveraged optimism. The divergence matters because heavily positive funding in a declining market raises the risk of long liquidations if prices keep falling. Traders should watch whether funding normalizes or spot ETF flows stabilize, either of which would ease pressure on the setup.