XRP Surges as Most Purchased Digital Asset, Bitcoin and Ethereum Experience $500 Million Drain

XRP, Bitcoin, and Ethereum are showing notably different trends in fund flows. According to the latest CoinShares Digital Asset Fund Flows Weekly Report, XRP has become the most acquired digital asset. In contrast, Bitcoin and Ethereum together recorded nearly $500 million in outflows. This shift suggests that investors are moving away from the larger assets in the market towards selected alternatives amid ongoing market volatility.

Key Takeaways:

XRP emerges as the most bought digital asset while Bitcoin and Ethereum face substantial outflows totaling nearly $500 million.
XRP-linked investment products saw inflows of $70.2 million last week, indicating strong investor interest.
Bitcoin and Ethereum experienced significant redemptions totaling $443 million and $59.5 million, respectively.
This trend indicates a shift in investor focus towards niche products and away from traditional leading assets amidst market volatility.

XRP

Noteworthy XRP Inflows Signal Investor Interest

In stark contrast to the sizable redemptions observed in Bitcoin and Ethereum, XRP is experiencing significant inflows. Data from CoinShares highlights that XRP-linked investment vehicles attracted $70.2 million in new investments last week. This reflects sustained interest from investors in these emerging ETF categories. Since their launch in mid-October, XRP has gathered approximately $1.07 billion in inflows, a remarkable trend given the existing outflow scenario for larger assets.

This divergence in fund flows points to a selective shift among investors. While mainstream risk assets like Bitcoin and Ethereum are facing selling pressure, XRP’s performance indicates that specific niche products are still in demand, even during a market downturn. This trend may be attributed to varied expectations regarding regulations, adoption rates, or the effects of newly introduced ETFs targeting specific investor demographics.

Significant Outflows: Bitcoin and Ethereum Under Pressure

Despite their leading positions in the market, Bitcoin and Ethereum have faced considerable net outflows in the week ending December 29, contributing largely to the overall outflow figures. CoinShares reports that Bitcoin-linked products experienced around $443 million in redemptions, accounting for almost all of the weekly withdrawals from crypto investment vehicles. Meanwhile, Ethereum-focused products recorded an outflow of $59.5 million, reflecting a broader trend of institutional caution towards the major digital assets.

These outflows have been accumulating since the mid-October launch of U.S. ETFs, with Bitcoin seeing approximately $2.8 billion and Ethereum about $1.6 billion in outflows during this timeframe. The concentration of redemptions in the United States, where $460 million left digital asset funds, underscores the prevailing reluctance among domestic investors to reinvest in BTC and ETH during times of price volatility and regulatory uncertainty.

Sustained outflows amid weak market sentiment mirror typical investor behavior during stressful market conditions. When capital exits well-established assets, it often signals profit-taking, risk mitigation, or shifts toward alternative strategies or cash positions. This behavior can pressure prices downward, contributing to prolonged periods of weakness. For Bitcoin and Ethereum, this trend indicates that their widespread adoption and liquidity have not shielded them from declines in institutional demand.

Overall, the most recent fund flow data reveals a distinct shift in investor focus. While Bitcoin and Ethereum continue to face significant outflows, XRP is attracting investments. This highlights a market landscape where targeted assets are increasingly appealing to both institutional and retail investors as we approach 2026.

XRP price chart from Tradingview.com Price continues to move in a tight range | Source: XRPUSDT on Tradingview.com