XRP Leads ETP Inflows ($63.1M) as Bitcoin Sees $264.4M Outflows — Institutional Rotation to Utility Altcoins

CoinShares data shows XRP led weekly digital-asset ETP inflows with $63.1M (week), standing out amid a broader crypto sell-off that pushed Bitcoin ETPs to $264.4M in outflows. Earlier-week CoinShares numbers cited by other analysts reported even larger institutional XRP inflows (around $70M), underscoring consistent demand. Ethereum and Solana recorded modest inflows ($5.3M and $8.2M), while longer-period figures indicate institutions are reallocating capital rather than exiting crypto wholesale. Market commentary attributes XRP’s strength to growing institutional and retail allocation toward altcoins with clear utility — notably cross-border payments and DeFi activity on the XRP Ledger (recently ~1.88M payments). Traders view the flows as a rotation from headline-driven Bitcoin exposure into selective, high-conviction, liquidity-rich altcoins like XRP. For traders, this suggests potential short-term bullish pressure on XRP (XRP) as portfolio rebalances increase demand, while Bitcoin (BTC) faced near-term outflows; monitor ETP flow updates, on-chain activity, and liquidity conditions to time entries and manage risk.
Bullish
XRP’s sizable and consistent ETP inflows — highlighted in both datasets — indicate growing demand from institutional and retail allocators reallocating into utility-focused altcoins. Inflow-driven buying pressure into XRP ETPs tends to be directly positive for XRP price, especially in the short term as funds are purchased and liquidity compresses. The contrast with meaningful BTC outflows suggests a rotation rather than a complete risk-off exit, which supports targeted altcoin strength rather than market-wide weakness. In the short term, expect upside pressure on XRP as ETP flows and on-chain usage translate to demand; watch for rapid liquidity changes that can amplify volatility. Over the longer term, sustained inflows and demonstrable real-world usage (payments and DeFi on XRP Ledger) could support higher baseline demand and price discovery, but risks remain: regulatory developments, reversal of flow patterns, or broader market sell-offs could negate gains. Traders should monitor ETP flow reports, order-book depth, and on-chain metrics to manage entry, position sizing, and stop levels.