Markets

Crypto Capital Has a Favorite and It’s Not XRP This Week

Cryptocurrency investment products are experiencing a powerful resurgence, with weekly inflows reaching $3.3 billion, according to the latest data from CoinShares.

The surge in demand, primarily driven by institutional giants like BlackRock, Fidelity, and Grayscale, has pushed year-to-date inflows past the $10 billion mark, surpassing previous records.

This continued investor appetite marks the sixth consecutive week of positive flows, briefly lifting total assets under management (AUM) across digital asset funds to a historic peak of $187.5 billion.

CoinShares’ Head of Research, James Butterfill, attributed the trend to strategic portfolio diversification amid mounting concerns over the U.S. economy, following Moody’s credit rating downgrade.

Unsurprisingly, Bitcoin-based products led the charge, drawing $2.9 billion in fresh capital last week alone, accounting for nearly 25% of all inflows to digital asset vehicles so far in 2025. The move reflects sustained optimism around Bitcoin’s role as a macro hedge, especially in light of its recent all-time high of $111,800.

Ethereum also attracted significant attention, securing $326 million in inflows,its strongest performance in over three months. The asset has benefited from renewed sentiment following its recent classification as a “standout performer” among institutional traders.

In contrast, XRP faced its most substantial setback to date. The token saw $37.2 million in outflows, marking an abrupt end to an impressive 80-week streak of continuous inflows. Analysts suggest the reversal may signal a shift in investor priorities or profit-taking after a prolonged bullish run.

Regionally, the United States remained the primary driver of inflows, contributing $3.2 billion last week. Other notable contributors included Germany ($41.5 million), Hong Kong ($33.3 million), and Australia ($10.9 million). Meanwhile, Switzerland bucked the trend with $16.6 million in outflows, indicating a round of profit-taking or portfolio rebalancing.

In conclusion, the broader crypto market also reflected this bullish spirit, with total capitalization climbing more than 6% to $3.5 trillion.

There is no doubt that analysts are closely watching whether the momentum will continue, particularly with macroeconomic uncertainty and regulatory shifts on the horizon.

Source
The Block

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