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The market for digital assets is changing due to capital rotation, and XRP is taking center stage. Last week, XRP saw a strong $189 million in inflows, outperforming the cryptocurrency king in terms of institutional investment while Bitcoin saw a rare $175 million in outflows. As Bitcoin fatigue sets in, the rise in products centered on XRP, Ethereum and Solana indicates a growing desire for alternatives.
XRP regains power
This divergence occurred during a week when cryptocurrency funds saw tremendous growth overall. Last week alone, digital asset investment products saw $19 billion in inflows, bringing the month-to-date total for July to a record $11.2 billion. This indicates a dramatic change in institutional sentiment, surpassing even the December 2024 post-election inflow wave of $7.6 billion.
In terms of regional inflows, the United States led the way with a commanding $2.03 billion, offsetting significant outflows from Canada (-$84.3 million) and Asia (particularly Hong Kong at -$160 million). Germany and Switzerland made significant contributions as well, indicating that European institutions were very interested.
Institutional flows
The week's biggest winner was Ethereum, which brought in an incredible $1.59 billion, its second-highest week ever. With its current year-to-date flows of $7.79 billion, it has surpassed 2024 as a whole. Given the circumstances, XRP's move may be more important. Given its comparatively smaller market capitalization and historically low exposure to ETFs, this increase in inflows suggests that investors are becoming more convinced that XRP is a reliable altcoin investment, particularly in light of the impending approval of an ETF.
Bitcoin outflows, however, might be the result of investors locking in gains or shifting positions before more regulatory clarity on ETFs. However, for the time being, the altseason thesis is undermined by the absence of follow-through inflows into the larger altcoin market. XRP is leading in important institutional metrics. It has momentum where it counts, which can be fuel for a proper price recovery.
Vladislav Sopov
U.Today Editorial Team