Institutional investors are starting to cash out of XRP after that month of stable entrywhich raises new questions about whether trust in digital assets is weakening. Recently, XRP has experienced significant volatility, sending its price down below $1.4. If this the downtrend continues aside from the outflow of money, it will not be surprising if market participants start to wonder if now is the right time to sell their portfolios to avoid deep losses.
XRP Records Emerging Like Other Digital Assets Attracting Big Money
XRP is currently different from the rest of the crypto market, and not in a good way. According to CoinShares digital asset fund flows weekly report, XRP recorded grossing $30.3 million last week. The decline stands in contrast to the broader digital asset investment market, that is continued to attract new money at the same time.
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Across all digital asset investment products, CoinShares reports revenue of $619 million. At the beginning of the week, the market also showed strong demandwith $1.44 billion flowing into cryptocurrencies within the first three days. However, the trend reversed late in the week, when investors pulled out $829 million on Thursday and Friday.
According to CoinShares analysts, the negative change in sentiment came as oil prices rose, which complicates inflation expectations. This happened even though US payroll data came in weaker than expected, a development that would have supported risky assets like cryptocurrencies, but failed to do so.
Investors Are More Selective About Crypto
Despite the decline of the last week, the total number reflects that institutional interest in digital assets it has remained strong, especially in the middle ongoing geopolitical tensions involving the US, Israel, and Iran. However, the distribution of those flows shows that investors are more selective in the supply of funds, as XRP is notably absent from the list of assets attracting new institutional capital.
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Instead, funds are concentrated in major assets such as Bitcoin, Ethereum, and Solana, leaving XRP without the current focus of institutional demand. CoinShares reports that Bitcoin attracted the most new capital, with $521 million flowing into related investment products. At the same time, 11.4 million dollars moved to short Bitcoin products, showing a mixed opinion among investors.
Notably, Ethereum recorded $88.5 million in inflows, while Solana brought in $14.6 million. Small shares are also directed at Uniswap and Chainlink. Against this background, XRP was the only major digital asset in it to hear the vital output.
The recent pullback may indicate that institutions are shifting funds away from XRP to assets with stronger news or higher expected returns. For investors, this change may raise questions about whether it’s time to sell. Although an exit from an institution does not automatically indicate a drop in price, it can reduces confidence among large investors. If this output continues in the coming weeks, it could be a sign of caution to come.
Featured image from Pxfuel, chart from Tradingview.com
