XRP emerged as a rare bright spot in the digital asset market after crypto investment funds recorded a sharp US$454 million in net outflows, according to data cited by Yahoo Finance.
The outflows mark one of the largest weekly withdrawals from crypto-focused funds in recent months, underscoring growing caution among institutional investors amid regulatory uncertainty, volatile prices and shifting expectations around global monetary policy. Bitcoin and Ethereum-linked products accounted for the bulk of the withdrawals, reflecting profit-taking and risk-off sentiment across major markets.
In contrast, XRP-linked investment products saw net inflows, standing out as investors selectively rotated into assets perceived to have clearer regulatory footing and stronger use-case narratives. Market analysts point to XRP’s role in cross-border payments and its improving legal clarity in key jurisdictions as factors supporting renewed interest.
The divergence highlights a broader trend in the crypto market: investors are no longer treating digital assets as a single trade. Instead, capital is moving more selectively, favouring tokens tied to real-world utility, payments infrastructure and enterprise adoption, while trimming exposure to more speculative assets.
Regionally, the outflows were concentrated in North America, where tighter regulatory scrutiny and macroeconomic uncertainty continue to weigh on sentiment. European markets showed more mixed flows, suggesting a less uniform approach among global investors.
Despite the overall pullback, industry watchers say XRP’s resilience could signal a shift in how institutions position within crypto portfolios in 2026, prioritising regulatory clarity and functional relevance over pure market momentum.
While short-term volatility remains likely, the latest fund flow data suggests that XRP is increasingly being viewed as a defensive play within the digital asset space at a time when confidence in the broader crypto market is being tested.
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