XRP Decoupled: Institutional Investors are Exiting Bitcoin

Last week, a total of $1.94 billion was exited from digital asset funds, and the market began to show cautious signs of recovery. The total outflow over the past four weeks reached $4.92 billion, marking the third largest outflow series since 2018. However, a small inflow of $258 million on the last trading day of the week indicated a limited turnaround in investor sentiment.

Bitcoin was at the center of last week's outflows. The product experienced an outflow of $1.27 billion, while the inflow of $225 million on Friday was noteworthy. On the other hand, Short Bitcoin products received a total inflow of $40 million over the last three weeks, increasing their total assets by 119% compared to the previous period. This indicates that investors are still seeking protection.

Ethereum also had a difficult week. Due to heavy selling, an outflow of $589 million occurred, which corresponds to 7.3% of the assets. However, the inflow of $57.5 million on Friday gave the impression of a limited recovery. On the altcoin side, Solana ended the week with an outflow of $156 million, while XRP, contrary to expectations, saw an inflow of $89.3 million, demonstrating a positive divergence.

The magnitude of the total outflows recorded over the last four weeks reveals that the pressure in the overall market has been ongoing for a long time. However, the total amount entering funds since the beginning of the year has been $44.4 billion, indicating that investor appetite has not completely vanished in 2025.

The strong inflow of XRP during a period of market risk aversion is believed to indicate a renewed institutional interest, especially with the reduction of regulatory uncertainties. This scenario shows that investors are selectively positioning themselves despite the selling pressure in the market.