XRP Shines Amidst Crypto Exodus: Investment Products See $795 Million Outflows as Regulatory Developments Drive Selective Gains

Updated on:12/24/2025 05:05 PM

The digital asset investment landscape encountered significant turbulence last week, with investors withdrawing $795 million from cryptocurrency exchange-traded products (ETPs), according to the latest CoinShares market report. This represents the third consecutive week of negative sentiment, highlighting growing investor apprehension amid ongoing global economic uncertainties. The sustained outflow trend has pushed total redemptions since early February to $7.2 billion, effectively erasing most of 2025's earlier gains and leaving year-to-date net inflows at a modest $165 million across all crypto investment products. James Butterfill, Head of Research at CoinShares, attributed much of the recent investor hesitation to renewed tariff tensions between the United States and China. Last week's escalation, where both nations imposed 25% tariffs on incoming goods, created immediate market uncertainty. Although President Donald Trump temporarily paused broader tariff implementations for 90 days, the damage to investor confidence in digital assets had already manifested. Despite these challenges, digital assets under management (AuM) experienced a brief recovery, climbing to $130 billion—an 8% rebound from the April 8 low, which represented the lowest point since November 2024. Bitcoin products dominated the outflow figures, experiencing $751 million in redemptions. Nevertheless, the leading cryptocurrency maintains $545 million in year-to-date inflows, with major Bitcoin ETF issuers like BlackRock, Grayscale, and Fidelity witnessing significant fund exits during this turbulent period. Interestingly, short Bitcoin products also recorded $4.6 million in outflows, suggesting investors aren't merely rotating into bearish positions. Ethereum posted the second-largest outflows at $37.6 million, while other alternative cryptocurrencies including Solana, Aave, and Sui also experienced declines of $5.1 million, $780,000, and $580,000 respectively. However, amidst this widespread exodus, XRP has emerged as a notable outlier, continuing to attract fresh capital with inflows of $3.5 million last week alone. This performance has boosted XRP's year-to-date inflows to $176 million, positioning it as one of the best-performing digital assets in 2025. The sustained interest in XRP can be attributed to growing optimism surrounding potential regulatory reforms and increasing speculation about a spot XRP ETF approval in the United States. Other altcoins such as Ondo, Algorand, and Avalanche posted modest inflows of approximately $250,000 each, indicating that selective investor interest in specific digital assets remains robust despite broader market weakness. This divergence suggests that the cryptocurrency market is becoming increasingly segmented, with performance increasingly tied to individual project fundamentals and regulatory developments rather than overall market sentiment.