Key Takeaways

  • Cryptocurrency investment products experience nearly $5 billion in outflows.
  • XRP defies the trend, recording significant inflows.
  • Bitcoin and Ethereum see the largest outflows.
  • Smart money traders are betting on XRP's short-term appreciation.

Outflows Dominate Crypto Market

Over the past four weeks, cryptocurrency investment products have witnessed nearly $5 billion in outflows, signaling a state of uncertainty and fear in the market. However, the final days of the past week saw minor inflows, potentially indicating a slight improvement in sentiment. According to a research report from CoinShares, crypto exchange-traded products (ETPs) experienced $1.94 billion in outflows last week, a slight decrease from the $2 billion exodus the week before. The four-week total now stands at $4.9 billion, marking the third-largest outflow run on record. Only the March tariff-driven sell-off and the February 2018 downturn were larger. Still, CoinShares noted “tentative signs of a turnaround,” citing $258 million in inflows during the last trading days of the week following seven straight days of redemptions.

XRP Defies the Downturn

While most cryptocurrencies experienced outflows, XRP was a rare bright spot. XRP exchange-traded products (ETPs) recorded $89.3 million in inflows last week, defying the broader downturn even as the token fell 6.9%. In contrast, Solana (SOL) ETPs were also in the red with $156 million in outflows and SOL falling 3.5%, according to Cointelegraph data.

Bitcoin and Ethereum Lead Outflows

Bitcoin (BTC) saw the majority of outflows, at $1.27 billion, while Ether (ETH) funds followed with $589 million in weekly outflows.

Smart Money Bets on XRP

Meanwhile, the industry’s most successful traders, who are tracked as “smart money” traders on Nansen’s blockchain intelligence platform, are betting on the short-term appreciation of the XRP token. Smart money traders added $10.4 million worth of cumulative leveraged long positions in the past 24 hours, as the cohort was net long with $74 million, according to Nansen. However, smart money was still betting on a further decline in Bitcoin, with $325 million in cumulative net short Bitcoin positions.

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