XRP Declines as Bitcoin Attracts Massive Institutional Capital

XRP continues to face growing pressure as increasing institutional capital flows heavily into Bitcoin, diverting attention and inflows away from top altcoins. This ongoing trend reinforces Bitcoin’s dominance, leaving XRP and other competitors like Cardano and Litecoin lagging behind in fund allocations and market attention.

According to the latest report from CoinShares, institutional interest remains firmly rooted in Bitcoin and Ethereum, which dominate recent investment activity. Last week, Bitcoin alone attracted a staggering $1.114 billion in capital, while Ethereum secured $123.8 million. These figures highlight a clear investor preference for the two leading digital assets, especially among those engaging with exchange-traded funds and crypto-based products.

Despite this wave of capital into Bitcoin, XRP continued to show resilience, pulling in $2.7 million in the last seven days and recording $10.5 million in monthly inflows. This places it neck and neck with Solana, which slightly outpaced XRP with weekly inflows of $2.8 million. However, XRP’s year-to-date inflows of $209 million decisively surpass Solana’s $86 million, suggesting some investors remain confident in XRP’s long-term potential.

Altcoins like Litecoin, Cardano, and Chainlink were largely left behind, bringing in paltry sums — $0.2 million, $0.3 million, and $0.6 million respectively — during the same period. These numbers illustrate a growing divide between leading cryptocurrencies and their rivals as large-scale investors channel funds into more established projects.

Overall, total weekly inflows reached $1.239 billion, further proving a surge in investor confidence within the digital asset sector. However, this confidence is disproportionately wired into Bitcoin and Ethereum, creating formidable competition for XRP and other altcoins striving to match that momentum.

At the same time, anticipation surrounding the approval of an XRP exchange-traded fund (ETF) in the United States is intensifying. Speculation tracked by Polymarket indicates that the likelihood of XRP ETF approval by the U.S. Securities and Exchange Commission has surged to 91%, reflecting growing optimism in the market. This is up from 90% just a few days prior and marks a 19% increase from earlier estimates.

Although the SEC has delayed its decision on the XRP ETF filing submitted by the investment giant Franklin Templeton, the market remains hopeful. Analysts and traders see this regulatory development as a potential catalyst that could reinvigorate XRP’s performance, despite current setbacks.

Meanwhile, Canada is already ahead in this race, having launched its own XRP ETF through Purpose Investments. In a strategic move to attract investors, Purpose recently waived the management fee on its newly introduced ETF product. This decision may serve as a model for other jurisdictions as the competition to launch cryptocurrency-based investment vehicles heats up globally.

As for XRP’s recent market action, the token experienced a notable drop over the weekend, sliding nearly 10% to a low of $1.93. However, the asset has since regained ground, currently trading around the $2 mark with a slight 3.37% recovery.

While Bitcoin continues to dominate institutional inflows and command media attention, XRP is slowly securing its own foothold through strategic developments and heightened ETF approval optimism. The uneven distribution of inflows reflects current market sentiment but doesn’t discount XRP’s underlying strength in investor confidence, especially as regulatory clarity begins to emerge.

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

If XRP can sustain its inflow momentum and capitalize on any upcoming regulatory breaks like ETF approval, the altcoin may soon narrow its performance gap with leading players, despite being temporarily overshadowed by Bitcoin’s overwhelming inflows.

CoinShares has published a weekly report

the probability of this approval this year in the US has increased to 91%