Bitcoin is visible Large institutional investor withdrawals meanwhile XRP has the strongest market share Number of new allocations according to the latest digital asset fund flow data. In theory, that rotation should support XRP's valuation. Instead, prices across the market remain under pressure. disconnection between Capital movements and market performance A deeper look into the liquidity landscape, regional positioning, and broader cycle dynamics driving the divergence is now needed.
Bitcoin outflows drive XRP inflows
Data from CoinShares Weekly Digital Asset Fund Flow Report show Bitcoin recorded $264 million in outflows during the measured week, making it the only major asset to show significant negative sentiment. drawer Bitcoin outflows since the beginning of the year increase This confirms that financial institutions are actively reducing exposure rather than passively rebalancing.
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At the same time, XRP received $63.1 million in weekly inflows, the highest of any tracked asset. Cumulative inflows have reached $109 million since the beginning of the year, ranking at the top in the world. The most powerful institutional allocation goals So far this year. Solana withdrew $8.2 million and Ethereum recorded $5.3 million, but neither came close to the scale of XRP, confirming that the rotation is concentrated rather than market-wide.
Regional flows strengthen rotation. Germany topped the list with $87.1 million in inflows, followed by Switzerland ($30.1 million), Canada ($21.4 million) and Brazil ($16.7 million). The United States moved in the opposite direction, posting weekly outflows of $214 million, contributing a cumulative total of $1.464 billion. Withdrawal from US listed products.
However, despite XRP's leadership in inflows, digital asset investment products overall still recorded net outflows of $187 million. This means that while Bitcoin capital is partially rotated into XRP, Meaningful Shares Are Exiting Cryptocurrency Completelyweakening the impact of inflows on prices.
Reduced liquidity and market structure weigh on prices
XRP price movements reflect broader liquidity constraints. The asset is currently trading at $1.42, down 12.3% over the past week. This decline highlights how inflows are being absorbed without leading to any immediate price increase..
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Additionally, total assets under management across digital asset funds fell to $129.8 billion, the lowest level since March 2025. Because the institutional capital base is shrinking, new allocations have less impact on prices than they would if the market were expanding.
The dynamics of the deal further clarify the pressures. The value of products traded on exchanges reached a record high of $63.1 billion, surpassing the previous peak of $56.4 billion set in October. Large volumes of trades associated with falling prices typically indicate distributions, liquidations, or hedging rather than accumulation.
Bitcoin's overall role amplifies that effect. as Key liquidity anchors of the marketcontinued BTC outflows will create correlation resistance across digital assets, limiting XRP's ability to proactively respond to inflows.
Analysts at CoinShares added that while capital outflows continue, the pace is slowing. Late cycle surrender and potential bottom formation. Within that framework, XRP inflows could represent: Early institutional position Not a catalyst for immediate price expansion, but before stabilization.
Featured image from Pixabay, chart from Tradingview.com
