XRP ETPs Take $70M As Institutions Exit Bitcoin

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David nodded

Author

David nodded

Since part of the group

June 2023

About the author

David is a financial journalist and contributor to Cryptonews.com with a passion for breaking comprehensive, accurate and reliable blockchain news.

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Last Updated:

December 30, 2026

Institutional capital is undergoing sharp rotation. While the broader digital asset market poured in $446 million last week, XRP investment products recorded inflows of $70.2 million, according to the latest CoinShares Digital Asset Fund Flows report.

The difference is stark. Bitcoin commodities saw $443 million in outflows – one of the biggest weekly returns since October. Ethereum funds lost 59.3 million dollars.

XRP (at $1.87, +0.43%) and Solana (at $125, +1.41%) were the only products that attracted a modest $7.5 million from SOL products.

This shift in capital represents a strategic shift in institutional portfolios as investors look for opportunities beyond giants like Bitcoin and Ethereum. The strong inflows into XRP products suggest growing confidence in alternative digital assets, which are believed to be emerging from regulatory uncertainty and offering new investment avenues.

This strategic diversification reflects a re-evaluation of risk-reward profiles and is standardized to further examine the specific geographic forces at play in this broader reorientation of the market.

Information: American sellers, German buyers

Sales were almost entirely US-led. US funds saw $460 million in outflows, likely due to lingering macro uncertainty and tariff talk.

On the contrary, German investors bought the dip. Germany-based funds brought in $35.7 million, bringing its month-to-date total to $248 million.

“Since mid-October in the US, XRP and Solana have seen $1.07 billion and $1.34 billion in revenue, respectively, raising the negative sentiment seen in other assets,” said James Butterfill, head of research at CoinShares.

Some vehicle data reflects the demand: Franklin Templeton's recently launched XRP fund alone handled $28.6 million in weekly volume.

What the flows indicate

This is not just “turning around”; It is a regulatory arbitrage business. The capital flight from Bitcoin ($2.8B outflows since mid-October) is directly linked to the launch of the Spot XRP and SOL ETFs. Institutions are shifting risk budgets to assets with new regulatory “wrappers” and lower leverage.

The separation of Germany and the US is also important because the European tables are stacking up while the US components are at risk ahead of Q1 fiscal shifts. Expect this divide to continue until the tariff narrative settles down.