Why do cryptocurrency funds remain optimistic about XRP when the overall market weakens?

In the past week, interesting divergence phenomena have appeared in the crypto market. According to the latest report released by CoinShares, digital assets experienced a net outflow of $1.94 billion last week, marking the third-largest withdrawal wave since 2018. However, amidst this sea of red, one cryptocurrency defied the trend and rose, attracting a large influx of institutional funds — it is XRP.

Why Has XRP Become a Safe Haven for Capital?

Against the backdrop of collective redemptions in the entire crypto fund sector, XRP stood out with a net capital inflow of $89.3 million. This is not a coincidence but has clear reasons.

According to blockchain analytics platform Santiment, the core driver behind XRP’s attention comes from the intensive launch of exchange-traded funds (ETFs) on spot trading platforms. The first XRP ETF issued by Canary Capital achieved $58 million in trading volume on its debut day, surpassing even the performance of the previously launched Bitwise Solana ETF. Subsequently, Bitwise Asset Management also launched its own spot XRP ETF product.

The launch of these ETFs sends a clear signal: mainstream institutional investors are increasingly viewing XRP as an important option in their altcoin allocations. This move by crypto funds reflects a market reassessment of XRP’s long-term value.

Capital Flows in Contrast During Market Adjustment

In comparison, the performance of mainstream market assets has been rather dull. Bitcoin experienced a $1.27 billion outflow over the past week. Although there was a brief rebound on Friday with $225 million inflow, it ultimately could not reverse the weekly downward trend.

Ethereum’s situation is even more severe. Last week, it faced a total withdrawal of $589 million, accounting for 7.3% of its asset management scale. Looking back at the previous week, ETH’s outflow reached $689 million. This outflow trend has persisted for several weeks, indicating that institutional investors remain relatively cautious about Ethereum at this stage.

Aggregated over the past four weeks, the total outflow of digital assets has reached $4.92 billion, highlighting the recent adjustment pressures in the market.

Market Logic Behind Price Performance

From real-time data, XRP’s current price is $2.07, with a 24-hour decline of 0.76%. Despite short-term fluctuations, its circulating market cap of $12.577 billion and ongoing capital inflow trend indicate that the market still holds expectations for its long-term prospects.

In contrast, Bitcoin continues to maintain its dominant position in the market during this adjustment, with a circulating market cap of $183.447 billion, reflecting its status as a cornerstone asset. Ethereum ranks second with a circulating market cap of $38.069 billion.

Shifts in Investment Logic of Crypto Funds

This phenomenon subtly reveals a change in market investment logic. When traditional large-cap assets face redemption pressures, some crypto funds are instead exploring undervalued opportunities in the market. The contrarian capital inflow into XRP exemplifies this selective allocation strategy.

ETFs, as an important channel for institutional entry, further confirm the market’s recognition of specific assets through their intensive launch. This signifies a growing rationality and professionalism among market participants in the development of the entire crypto asset ecosystem.