Institutions Shift Billions from BTC, ETH and SOL into XRP After U.S. Spot XRP ETF Launches
Institutional investors last week pulled funds from Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) and redirected capital into XRP following the recent launch of U.S. spot XRP ETFs. CoinShares data showed outflows of $1.27 billion from Bitcoin funds, $589 million from Ethereum funds and $156 million from Solana funds, while XRP funds recorded $89.3 million in net inflows. Overall, crypto funds saw $1.94 billion of outflows in the week — the fourth consecutive weekly outflow streak and the third-largest since 2018 — bringing four-week outflows to $4.92 billion (about 2.9% of assets under management). Despite the outflows, year-to-date inflows into major crypto funds remain sizeable at $44.4 billion. SoSoValue attribution indicates U.S. spot XRP ETFs accounted for strong demand: U.S. spot XRP funds logged $199.45 million of net inflows during the latest week, including $164.04 million across the first two trading days after launches. Grayscale and Franklin Templeton’s XRP ETFs pulled in $67.4 million and $62.6 million respectively; further launches (21Shares, CoinShares, WisdomTree) may increase flows. The inflows have supported XRP’s price recovery above $2 despite broader market declines. Key implications for traders: expect increased liquidity and correlation shifts as institutional flows favor XRP over BTC/ETH/SOL; watch ETF rollouts, fund launch schedules and short-term volatility as positions rebalance.
Bullish
Net inflows into U.S. spot XRP ETFs and the redirection of institutional capital from BTC, ETH and SOL toward XRP create a bullish signal specifically for XRP. The immediate effect is higher demand and improved liquidity for XRP, which has pushed the price back above $2 despite broader market outflows. Historically, ETF listings and large institutional flows can materially re-rate an asset’s price (see BTC spot ETF launches in 2021–2023 and subsequent inflows). Short-term, expect elevated volatility as institutions rebalance portfolios and other ETF managers (21Shares, CoinShares, WisdomTree) launch products that could amplify flows. Mid-to-long term, sustained ETF inflows would support higher price floors and increased institutional participation in XRP markets, potentially lowering spreads and attracting derivative activity. However, broader crypto fund outflows and macro risk remain bearish for overall market risk appetite; BTC/ETH/SOL may face continued pressure if capital permanently reallocates to XRP. Traders should monitor: daily ETF flows, premium/discounts in ETF NAVs, on-chain XRP transfer volumes, BTC/ETH/SOL fund flows, and macro liquidity indicators to time entries and manage risk.