XRP defies crypto outflow wave with $3.5 million in fresh capital
XRP-linked investment products attracted around $3.5 million in net inflows last week, standing out as one of the few bright spots in an otherwise negative week for digital asset funds. Over the same period, broader crypto investment vehicles saw approximately $288 million pulled out, according to the latest weekly flows data from CoinShares.
The report highlighted that this was the fifth straight week of net redemptions from crypto funds, bringing cumulative outflows over that stretch to roughly $4 billion. At the same time, trading activity has thinned dramatically, with total volumes sinking to their lowest levels since mid-2025. The combination of falling volumes and persistent outflows underscores a more cautious stance among both retail and institutional participants.
Regional flows showed a stark divide. The United States remained the main source of selling pressure, with investors there withdrawing about $347 million from digital asset products in just one week. In contrast, several other jurisdictions saw net buying: Switzerland registered around $19.5 million in inflows, Canada added about $16.8 million, and Germany attracted roughly $16.2 million. Together, these three markets brought in close to $59 million, partially offsetting US-led outflows but not enough to reverse the global trend.
Bitcoin remained at the center of the pullback. Products tied to the largest cryptocurrency recorded weekly outflows of approximately $215 million, pushing year-to-date redemptions to around $1.3 billion. That suggests a meaningful portion of capital that once flowed into Bitcoin products earlier in the cycle is now either rotating into other assets or moving to the sidelines.
Ethereum-related investment products also struggled, seeing weekly outflows of about $36.5 million. Tron-linked products recorded roughly $18.9 million in redemptions, while multi-asset funds – those that hold baskets of different cryptocurrencies – saw around $32.5 million in capital exit. Interestingly, products designed to profit from a decline in Bitcoin’s price, the so‑called short-Bitcoin funds, attracted about $5.5 million in new inflows, indicating that some investors are positioning for further downside or seeking to hedge existing exposure.
Against this bearish backdrop, XRP stood out as a notable exception. While the overall market was bleeding capital, XRP products continued to attract fresh money. After pulling in around $3.5 million last week, they had already seen a far larger inflow of about $33.4 million the week before. Month to date, XRP inflows now total approximately $105 million, with year-to-date inflows reaching close to $151 million. That makes XRP one of the stronger performers in terms of investment product demand during a period of risk-off sentiment in crypto.
Solana-linked products also registered positive flows, gaining about $3.3 million last week. That pushed Solana’s month-to-date inflows to roughly $41.6 million and its year-to-date tally to around $102.5 million. Chainlink-based products recorded a more modest but still positive $1.2 million in net inflows, showing that select altcoins continue to attract targeted institutional and high-net-worth interest despite the broader risk reduction.
Market analysts interpret this divergence in flows as evidence of rotation rather than a wholesale abandonment of the digital asset space. Instead of leaving crypto entirely, many investors appear to be shifting capital within the sector – moving away from large, crowded positions like Bitcoin and Ethereum and into assets they perceive as having stronger near-term catalysts, better risk-reward profiles, or clearer regulatory positioning.
Several factors are cited to explain XRP’s resilience. First, its lower unit price compared with Bitcoin and Ethereum can make it psychologically more accessible to some investors, even though unit price alone does not determine valuation. This “affordability effect” often plays a role when newer participants look for exposure in assets that appear cheaper on a per-token basis.
Second, XRP has recently benefited from greater regulatory clarity in a major jurisdiction following high-profile legal proceedings. While the broader crypto market continues to navigate an uncertain and often fragmented regulatory landscape, XRP’s relative clarity is seen as a competitive advantage. For professional investors managing compliance risk, the ability to allocate to a token that has survived a lengthy legal process can be a significant differentiator.
Third, XRP’s narrative as a token geared toward payments and cross-border settlement continues to resonate with a subset of institutional allocators. In an environment where speculation around meme coins and purely speculative tokens has cooled, projects with a clear use case and long operational history tend to draw more serious attention. That perception of being tied to real-world utility may be helping XRP attract inflows even as speculative fervor in other corners of the market fades.
The subdued trading volumes across the broader market further reinforce the idea that participants are becoming more selective. With total crypto trading volume slipping to its lowest point since mid-2025, liquidity has thinned, spreads have widened in some venues, and short-term traders have fewer obvious momentum trends to ride. In that context, capital often concentrates in a handful of narratives and assets that appear comparatively robust, which currently includes XRP, Solana, and Chainlink.
For Bitcoin and Ethereum, sustained outflows do not necessarily mean a collapse in long‑term conviction, but they do point to a cooling of the institutional enthusiasm that characterized earlier phases of the cycle. Some large investors may be crystallizing profits, de‑risking portfolios ahead of macroeconomic events, or temporarily reallocating to cash and fixed income as yields remain elevated in traditional markets.
At the same time, inflows into short-Bitcoin products highlight a more sophisticated positioning dynamic. Rather than simply selling their holdings, some institutions may be using short products to hedge downside risk while maintaining core long-term exposure in spot or other vehicles. This kind of hedging behavior is common in mature asset classes and is increasingly visible in crypto as derivative and structured product markets develop.
The regional pattern of flows also contains important signals. Persistent outflows from US-based products reflect both regulatory pressure and shifting risk appetite in the world’s largest capital market. Meanwhile, steady inflows in Switzerland, Canada, and Germany suggest that regulatory frameworks perceived as more predictable, along with growing local infrastructure for custody and trading, are encouraging investors in those regions to either maintain or gradually increase digital asset exposure.
Looking ahead, the contrast between heavy outflows from flagship assets and continued inflows into a small set of alternative layer‑1 and infrastructure tokens could shape the next phase of the market. If capital keeps rotating into assets like XRP and Solana, it may fuel renewed debates about the long‑term dominance of Bitcoin and Ethereum versus a more diversified, multi-chain ecosystem.
For XRP specifically, sustained inflows into investment products can have secondary effects beyond price. Higher institutional participation often translates into deeper liquidity, tighter spreads, and more sophisticated derivatives based on the asset. Over time, that can improve market structure and attract an even wider pool of investors, creating a feedback loop that reinforces XRP’s role within the broader crypto landscape.
Nonetheless, the overarching picture from the latest data remains one of caution. Five consecutive weeks of net outflows and the weakest trading volumes in many months point to a market still digesting previous gains and reassessing risk in light of macroeconomic uncertainty and evolving regulation. In this environment, the assets that continue to pull in capital – such as XRP – are likely to be watched closely as potential bellwethers for where institutional sentiment may turn next.