In the latest weekly report, crypto investment funds saw a significant outflow of $1.94 billion, marking the third-largest weekly outflow since 2018.
XRP attracted $89.3 million in inflows, contrasting with Bitcoin and Ethereum which experienced withdrawals.
US-based funds accounted for 97% of the global outflows, reaching $1.97 billion, indicating investor caution amidst Federal Reserve policy uncertainty and Jerome Powell's hawkish commentary.
Outflow Trends
Four-week outflows totaled $4.92 billion, representing 2.9% of assets under management. However, Friday brought a notable $258 million in inflows.
Asset Performance
Bitcoin led the outflows with $1.27 billion, partially offset by a $225 million return on Friday. Ethereum also experienced significant outflows of $589 million, despite a $57.5 million rebound on Friday.
XRP Resilience
Solana saw $156 million outflows, while XRP attracted capital, marking the only major digital asset with net investment gains.
- Analysts attribute XRP's resilience to Ripple's strategic infrastructure acquisitions worth $2.7 billion, positioning XRP as a foundational financial layer rather than solely a speculative asset.
- Whale activity in XRP, with $7.7 billion bought over three months, suggests potential significant price movements ahead, reflecting continued institutional interest despite recent market volatility.
While overall outflows in crypto investment funds have been substantial, specific assets like XRP have shown resilience and appealing investment dynamics. The influx of institutional capital, especially in XRP, coupled with strategic acquisitions, indicates a shifting landscape towards a more robust financial ecosystem.