Lucía Peña
Last week, global crypto investment products managed by major firms like BlackRock, Grayscale, Fidelity, Bitwise, ProShares, and 21Shares recorded modest net inflows of $6 million, according to CoinShares.
Although the week began on a positive note, stronger-than-expected U.S. retail sales data midweek led to $146 million in outflows, reflecting uncertainty among investors. Despite the fluctuation, CoinShares’ Head of Research James Butterfill noted the market is still showing early signs of recovery.
XRP Outshines Bitcoin and Ethereum with Unexpected Momentum
In a surprising shift, XRP-linked investment products outperformed their Bitcoin and Ethereum counterparts. XRP funds brought in $37.7 million, bringing their year-to-date total to $214 million — just $1 million shy of Ethereum-based products.
This rally comes despite a slight decline in XRP’s price over the last week. Analysts at Kaiko attributed XRP’s strong performance to superior liquidity conditions and the rollout of leveraged investment vehicles, which could position the token favorably for potential spot ETF approval in the U.S. by the SEC.
Ethereum and Bitcoin Products See Outflows as Investors Rebalance
While XRP funds attracted capital, Ethereum-focused products experienced $26.7 million in outflows, and Bitcoin funds saw $6 million leave the market. Even short-Bitcoin products, which profit from price declines, saw $1.2 million in outflows, marking the seventh consecutive week of exits and a total reduction of $36 million, or 40% of total AUM.
European Funds Lead Inflows as U.S. Sentiment Wavers
Regionally, the strongest inflows came from Switzerland, where crypto investment products brought in $43.7 million, followed by Germany and Canada with $22.3 million and $9.4 million, respectively. In contrast, U.S.-based funds, typically the dominant force in global flows, posted $71 million in net outflows, likely influenced by ongoing market tensions surrounding Trump’s tariff rhetoric.
Crypto Shows Signs of Decoupling from Traditional Markets
Despite global economic pressure, Bitcoin and other cryptocurrencies are showing resilience. Last week, Bitcoin climbed 5.7% to $88,411, while the GMCI 30 index, tracking the top digital assets, rose 2.2%. At the same time, traditional equity markets struggled — the Nasdaq dropped 7.3%, and the S&P 500 fell 5.2%.
Meanwhile, gold surged to an all-time high of nearly $3,500 per ounce, gaining 8% over the same period — indicating a potential “risk-off” rotation among investors.
“More investors seem to be viewing Bitcoin as a digital alternative to gold,” said Gerry O’Shea, Head of Global Market Insights at Hashdex. “With global liquidity rising and a more favorable U.S. regulatory climate emerging, Bitcoin could follow gold’s lead and see significant upside in the coming months.”
