XRP Products Defy Trend as Broader Crypto ETPs See Sustained Outflows

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While XRP-focused exchange-traded products attracted $70 million in inflows, the wider crypto fund market remained bearish for a second consecutive week. Overall crypto ETPs registered $446 million in outflows, according to a report from CoinShares.

The outflows were principally led by investors selling out of Bitcoin and Ethereum-based products. Total outflows from crypto ETPs have now risen to $3.2 billion since the market shock on Oct. 10. Last week reversed three prior weeks of inflows by posting $952 million in outflows.

“This suggests investor sentiment has yet to fully recover,” CoinShares noted. The report added that year-to-date flows remain broadly in line with last year, though total assets under management have risen by just 10% year-to-date, indicating a lack of positive outcomes for the average investor when flows are considered.

Last week’s outflows were led by Bitcoin ETPs shedding nearly $443 million and Ethereum products losing $59 million. The lone bright spots were XRP and Solana funds, which took in a relatively meager $70 million and $7.5 million, respectively. A notable contributor was Franklin Templeton’s XRP ETF, launched in late November, which brought in $28.6 million.

October’s flash crash, considered the crypto market’s largest liquidation event to date, was triggered in part by US President Donald Trump threatening a 100% tariff on imports from China. The scale of the liquidations suggested the involvement of larger institutional players or market makers.