XRP Faces Record $37M Outflow Amid $3.3B Crypto Inflows

XRP is grabbing headlines again, but this time for its massive $37.2 million outflow—the largest in the token’s history. This record-breaking reversal comes after an impressive 80-week streak of steady investment inflows in digital assets, clearly highlighting the ongoing volatility in the crypto space.

Despite XRP’s downturn, the broader digital asset investment landscape painted a much more optimistic picture. In the past week alone, overall inflows hit $3.3 billion, pushing the six-week cumulative total to $10.5 billion. Year-to-date, these inflows reached a record $10.8 billion, with assets under management briefly touching an all-time high of $187.5 billion. This signals a growing investor confidence in crypto assets, even as certain tokens like XRP see setbacks.

Investor Strategies Pivot Toward Diversification

Much of this bullish momentum can be attributed to macroeconomic pressures in the United States. Rising concerns surrounding national credit stability—particularly after a U.S. credit downgrade issued by Moody’s—and higher treasury yields are pushing investors to diversify beyond traditional assets. Digital assets have increasingly become a safe haven in this evolving economic landscape.

As outlined in the recently released Digital Asset Fund Flows Weekly Report, Bitcoin stood as the primary beneficiary, raking in $2.9 billion in inflows last week alone. The leading cryptocurrency now accounts for a quarter of total inflows in 2024. Surprisingly, a portion of the market also took advantage of Bitcoin’s rally to short the asset, resulting in $12.7 million moving into short-Bitcoin products—the highest amount since December 2024.

Ethereum followed closely behind, capturing $326 million in inflows—its strongest performance in over three months—marking five consecutive weeks of growing investor confidence. Other notable assets that recorded gains include Solana with $4.3 million, Sui at $2.9 million, Chainlink with $0.9 million, and Cardano at $0.6 million.

While these cryptocurrencies gained traction, XRP and multi-asset investment products reported outflows. XRP’s reversal was unmatched not just in numbers but also in its symbolic break from a previously strong trend. Multi-asset products, often seen as a diversified route into crypto, also saw $1.9 million in money exiting the market, suggesting a selective investor appetite focused on top-performing individual assets.

Regional Trends Reflect Varied Sentiment

On a geographic scale, the United States dominated crypto inflows once again, attracting $3.2 billion last week alone. Germany followed distantly with $41.5 million, while Hong Kong added $33.3 million and Australia saw $10.9 million in inflows. Canada contributed minimally with $0.1 million in added investments.

However, not all regions mirrored this positive sentiment. Switzerland saw a withdrawal of $16.6 million, as local investors opted to take profits. Sweden was next with $12.1 million in outflows, and Brazil logged a more modest $1.9 million leaving digital asset markets. These moves reflect region-specific responses to broader economic cues and localized investment strategies.

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

XRP remains a key token to watch, especially as its outlook diverges sharply from the surging confidence seen across Bitcoin, Ethereum, and other popular assets. While the crypto market continues to draw in record-setting capital, XRP’s historic outflow may represent a pivotal moment in shaping investor strategies going forward.