XRP has emerged as a rare beacon of optimism amid a turbulent week in the cryptocurrency investment space, drawing in $25 million even as Bitcoin and Ethereum products experienced a significant combined outflow of $1.43 billion.
Investor sentiment diverges as XRP secures inflows while the broader crypto market sees major fund withdrawals.
Crypto Investment Products See Steep Outflows
According to the latest report from CoinShares, digital asset exchange-traded products (ETPs) faced one of the sharpest pullbacks of 2025, driven largely by concerns around the U.S. Federal Reserve’s future policy stance. Weekly outflows topped $1.43 billion, making it the third-largest weekly retreat this year and the most severe since March.
Trading volumes also saw notable activity, climbing to $38 billion—nearly 50% higher than the yearly average. The early part of the week was particularly brutal, with $2 billion exiting crypto funds before a minor late-week recovery helped pare the losses.
Bitcoin and Ethereum Lead the Retreat
The bulk of the selling pressure zeroed in on Bitcoin, which experienced $1 billion in outflows. Following closely, Ethereum saw $440 million withdrawn from investment products tied to the asset.
Despite Ethereum’s setback, it has managed to maintain relatively strong monthly performance, with $2.5 billion of net inflows in August. In contrast, Bitcoin recorded a monthly net outflow of $1 billion. Year-to-date performance also underscores Ethereum’s stronger position, accounting for 26% of total ETP assets under management compared to Bitcoin’s 11%.
XRP Attracts Capital as Legal Clouds Clear
Standing apart from the sell-off, XRP captured $25 million in fresh inflows. Investor confidence was likely bolstered by the resolution of ongoing legal proceedings between Ripple and the U.S. Securities and Exchange Commission. The formal closure of the SEC’s case against Ripple appeared to revive optimism around XRP’s regulatory future and long-term utility.
Alongside XRP, a few other altcoins also saw gains. Solana products received $12 million in new funds, while Cronos brought in approximately $4.4 million. However, not all altcoins shared this momentum, as Sui and Ton experienced combined outflows of over $14 million.
Geographic Trends Highlight Contrasting Sentiment
Geographically, capital flow patterns revealed contrasting narratives. U.S.-based funds, including BlackRock’s iShares, dominated the sell-side, accounting for $1.3 billion of total outflows. Sweden and Switzerland trailed behind with $135.5 million and $11.8 million in withdrawals, respectively.
On the other hand, some markets posted minor inflows. Germany saw $18.4 million in net investments, while Canada and Hong Kong took in $3.7 million and $3.5 million, respectively. Though modest, these contributions helped soften the wider market decline.
In summary, while Bitcoin and Ethereum investment vehicles faced steep exits due to macroeconomic uncertainty, XRP strengthened its market appeal with positive legal news, inviting investor capital in contrast to the broader trend.
