Institutional investors appear to be reshuffling their crypto exposure, with Bitcoin and Ethereum exchange-traded products recording nearly $1 billion in combined outflows. Amid the withdrawal, these investors channeled millions of dollars its way into XRP-linked investment products.
The shift highlights a growing appetite for alternative large-cap digital assets as investors reassess risk, regulation, and upside potential across the market.
Institutions Pull Back From BTC and ETH
A recent market data report by CoinShares has revealed that Bitcoin and Ethereum ETPs have experienced their first outflow in four weeks, recording a combined $1.15 billion in outflows over the past week, which ended on December 20. According to CoinShares, the outflows were triggered by the delay in the US Crypto Clarity Act, a bill intended to provide a clear regulatory framework for digital assets in the U.S.
Thus, regulatory uncertainty, alongside concerns over the continued offloading of whale assets, contributed to the institutional investor pullback. Ethereum products suffered the most, experiencing $555 million in outflows, while Bitcoin products followed behind with $460 million outflows
Meanwhile, CoinShares also noted that while Ethereum experienced the worst of it, the inflows for ETH products in 2025 have surpassed those of 2024, surging from $5.3 billion to $12.7 billion. However, Bitcoin has shed a significant portion of its 2024 inflow, declining from $41.6 billion to $27.2 billion in 2025.
XRP Emerges as a Standout Beneficiary
Meanwhile, it is interesting to note that while BTC and ETH products saw capital exit, XRP-focused ETPs recorded steady inflows over the past week, making it one of the top-performing assets in terms of institutional interest during the same period.
The majority of these flows came from XRP-linked U.S.-based ETFs, which have since crossed the $1 billion AuM milestone in just four weeks of trading, and the products have yet to record a single outflow since their launch.
Interestingly, the renewed attention comes as XRP continues to benefit from regulatory clarity in the United States, following the resolution of the SEC v. Ripple lawsuit earlier this year. For institutional investors, its improved legal standing has significantly reduced perceived regulatory risk, a factor that has historically limited broader adoption.
As a result, the token is now increasingly viewed as a compliant, liquid alternative to Bitcoin and Ethereum, particularly for investors seeking diversification beyond the two dominant assets. According to CoinShares, XRP ETPs saw a $62.9 million inflow over the past week, while Solana products recorded $48.5 million inflows in the same period.
Price Action Reflects Growing Confidence
XRP’s price performance appears to support the narrative of institutional rotation. While Bitcoin and Ethereum have shown signs of consolidation, XRP has remained relatively resilient, posting modest gains and maintaining key technical levels.
In a recent commentary, market expert, Ali Charts, had revealed that the XRP TD sequential is flashing a buy signal, suggesting that the token is gearing up for the next leg up.
Interestingly, the sustained inflows into XRP ETPs could support the buy action and boost its price in the near term, especially if broader market sentiment stabilizes. Meanwhile, data from CoinMarketCap shows that XRP currently trades around $1.93 mark and ranks 5th in the crypto market.
The CoinRemark Team
