Crypto Institutional Inflows Spike for XRP, ETH, and Solana

Crypto institutional inflows surged last week, with XRP, Ethereum (ETH), and Solana (SOL) witnessing sizable investments, even as Bitcoin (BTC) saw significant capital outflows, highlighting shifting sentiments among large-scale investors in the cryptocurrency market.

According to data from CoinShares, weekly digital asset fund flows reached a total of $13 million. While this may appear modest, the breakdown paints a clearer picture of investor preferences. Ethereum led the pack with $30 million in inflows, followed by Solana and XRP with $4 million and $1 million respectively. These gains came at a time when Bitcoin investment products experienced outflows totaling $110 million, continuing their three-week losing streak.

Interestingly, despite the capital leaving Bitcoin-focused funds, the broader blockchain equities market also declined, recording $9 million in outflows. This suggests a cautious outlook from institutional participants amid market volatility and shifting macroeconomic trends.

CoinShares attributed the continued Bitcoin outflows to market uncertainties and a recalibration of investor strategies. The preference for altcoins like Ethereum, Solana, and XRP indicates a diversification trend, as institutions look toward alternative digital assets with strong use cases and technological potential.

Ethereum has particularly benefited from renewed investor interest following its recent network upgrades designed to improve scalability and efficiency. With Ethereum’s transition to proof-of-stake and the success of the Dencun upgrade, the blockchain has become more attractive to investors seeking energy-efficient and sustainable assets.

Solana, known for its high-speed transaction capabilities and growing DeFi ecosystem, has also gained broader institutional approval. With increasing developer activity and consistent on-chain performance, Solana remains a compelling alternative for investors looking beyond traditional cryptocurrencies.

XRP’s steady inflow could be linked to its ongoing legal clarity in the United States and strengthening use case in cross-border payments. The asset continues to hold institutional appeal, particularly for those looking to engage in utility-driven tokens with regulated frameworks.

Meanwhile, Bitcoin’s drop continues to raise concerns, especially from a short-term perspective. Its three-week streak of outflows is the longest since mid-2023, reflecting growing caution among institutions. The recent price volatility, combined with regulatory discussions and economic uncertainty, appears to have driven some investors to reduce exposure to Bitcoin while reallocating toward altcoins that may offer better immediate returns.

Despite this trend, Bitcoin’s long-term fundamentals remain strong, and some experts believe the current outflows could be temporary. Accumulation among retail investors and medium-term holders may act as a buffer against steep price downturns, offering some stability to the broader market.

The overall tone of the institutional market reflects both caution and exploration. With macroeconomic variables still in play, and ongoing regulatory developments impacting sentiment, investors continue adjusting their portfolios. Asset managers now appear increasingly willing to explore options like Ethereum and Solana, with diversified exposure strategies gaining ground.

The regional breakdown from CoinShares’ report shows that most inflows came from North America, while European investment products remained relatively flat. This divergence highlights regional differences in investor sentiment, potentially driven by varying regulatory environments and market maturity levels.

Multi-asset investment products – which include exposure to several cryptocurrencies in a single fund – also witnessed modest inflows, signaling interest in diversified strategies. However, these were outweighed by the dominant trend of Bitcoin outflows across major institutional platforms.

The shifting balance of capital among digital asset funds signals a broader transition in the crypto space. With continued innovation and growing enterprise adoption across several blockchains, institutional investors are clearly exploring options beyond Bitcoin. This trend may continue as the industry matures and new use cases gain prominence.

Related: Expert Advice: Sell XRP If You’re Confused

More details can be found in the CoinShares weekly report, which outlines the latest trends and data behind these fund movements.