Investors are moving away from Bitcoin and Ethereum: money is flowing into XRP and multi-asset ETFs

Cryptocurrency ETFs continue to register record outflows, while XRP and multi-asset ETFs gain ground.

Last week, institutional investment in digital assets experienced one of its most volatile periods of the year. According to CoinShares' weekly fund flow report, cryptocurrency-linked exchange-traded products registered outflows of $2.000 billionThis is the highest figure since February. These outflows reflect a shift in current investor behavior, with investors reducing their exposure to the leading cryptocurrencies, Bitcoin and Ethereum.

Instead of maintaining their position in these two cryptocurrencies, large investors are diversifying into altcoinsThe report in question particularly highlights the growing interest in multi-asset vehicles and the recent arrival on the US market of the XRP spot ETF, which has quickly captured attention and resources on Wall Street. 

For market analysts, this migration of capital reflects both a search for yield and lower risk amid the volatility of Bitcoin and Ethereum, and an evolution in the supply of digital products, which expands the possibilities beyond the traditional giants.

Bitcoin and Ethereum lose prominence amid uncertainty

The CoinShares report attributes the capital exodus to two main factors: the growing uncertainty surrounding global monetary policy and the massive sell-off by whales native to the crypto ecosystem. The United States accounted for 97% of departuresThe United States saw $1.970 billion withdrawn from crypto products, followed by Switzerland and Hong Kong. In contrast, Germany registered inflows of $13,2 million, demonstrating a contrary stance to the price decline.

The report also indicates that Bitcoin was the most affected asset in terms of volume, with outflows of $1.380 billion, representing 2% of total assets under management (AuM) in investment products. Ethereum, although with lower volume, suffered a proportionally more severe loss: $689 million, equivalent to 4% of its AuM. Solana and XRP also registered smaller outflows, but the overall context shows a loss of confidence in major assets, at least in the short term, the report notes. report. 

This outflow of capital is part of a broader market correction. Since its peak in October, total assets under management in crypto ETFs have fallen from $264.000 billion to $191.000 billion, a 27% contraction. Regulatory pressure, mixed signals from central banks, and volatility in traditional markets have all contributed to this cautious climate.

Capital in motion: multi-assets and short positions gain ground

While Bitcoin and Ethereum are losing traction, multi-asset investment funds have attracted $69 million in the last three weeks. These types of products, which diversify exposure across various cryptocurrencies, appear to offer a more stable alternative for investors during periods of high volatility like the present. Furthermore, according to the report, short Bitcoin ETPs—instruments that allow betting against the asset's price—have seen inflows of $18,1 million, suggesting a bearish outlook among certain market segments.

Apparently, this capital shift may be reflecting a defensive strategyas well as a search for efficiency in risk allocation. Institutional investors are adjusting their portfolios in the face of an uncertain macroeconomic environment, where monetary policy decisions and the movements of large asset holders can rapidly alter market equilibrium.

XRP bursts onto the scene: historic debut of its spot ETF

Amid this landscape, the debut of a new XRP spot ETF on Nasdaq marked a turning point. Launched by Canary Capital under the ticker symbol XRP, the new XRP spot ETF was launched by Canary Capital. XRPCThis product became the biggest ETF launch so far in 2025, with $245 million in inflows during its first day of trading. 

Also, according to Indian Eric Balchunas of Bloomberg said this investment fund recorded the highest trading volume on its opening day, even surpassing the Solana ETF, launched by Bitwise the previous month.

The XRPC offers direct exposure to the native token of the XRP Ledger, designed to facilitate fast, low-cost cross-border payments. Its technical architecture, focused on interoperability and liquidity, has gained traction among fintech companies and value transfer platforms. According to Bloomberg Intelligence, the XRPC's performance on a day of sharp market declines demonstrates investor appetite for regulated altcoin-linked products with established use cases.

This launch also reinforces the narrative that digital assets with tangible utility, such as XRP in global payments, can attract institutional capital even during market corrections. The inflow of $245 million in a single day contrasts sharply with the outflows from traditional funds and could signal a reshaping of the crypto investment landscape in the coming months.

A strategic reconfiguration in the crypto ecosystem

The capital rotation observed this week in the crypto market is not solely due to current circumstances, but could foreshadow deeper changes in market structure. The decline of Bitcoin and Ethereum in institutional products, the rise of multi-asset ETPs, and the success of the XRP spot ETF suggest that investors, at least for the time being, are reassessing their exposure criteria, prioritizing efficiency, diversification, and real utility.

Although the overall sentiment remains cautious, the performance of Germany and the debut of XRPC show that there are pockets of optimism and selective opportunities in the market. 

In this context, the next moves by regulators, the evolution of US monetary policy, and the performance of new listed products will be key to understanding where institutional capital is headed in the crypto world.