Crypto exchange traded products recorded net outflows of $446 million during the final week of December. However, XRP linked funds moved in the opposite direction with $70 million in fresh capital. This marked a clear divergence at a time when Bitcoin and Ethereum products faced sustained selling pressure.
According to an expert from Ultrabrokers, the XRP inflows reflect targeted allocation rather than broad market enthusiasm. Investors appear to be making calculated bets on specific narratives. They are choosing projects with recent regulatory clarity and structural catalysts rather than rotating into crypto as an asset class.
XRP’s legal dispute with the SEC reached resolution earlier this year. At the same time, new XRP exchange traded funds launched with backing from established asset managers. Together, these factors created a window for entry that institutional capital appears to be using.
Where Capital Diverged Across Digital Assets
The $70 million flowing into XRP products stood in sharp contrast to the rest of the crypto ETP market. Bitcoin products faced the heaviest selling, with US spot Bitcoin ETFs recording seven consecutive days of net outflows totaling $1.1 billion since December 18. Meanwhile, Ethereum ETFs also posted hundreds of millions in net negative flows.
Solana managed to avoid net outflows, though new money slowed noticeably. As a result, XRP emerged as the only major digital asset with clear positive momentum at the fund level. Most capital flowed into newly launched products, with Franklin Templeton’s XRP ETF among the primary beneficiaries.
Monthly Flow Patterns Confirm XRP Strength
XRP ETFs recorded the strongest monthly inflows among all crypto products at $424.77 million. Most other digital asset funds posted substantial outflows. Only Solana, Litecoin, Sui, and Chainlink managed modest positive flows, though their totals remained far below XRP’s numbers.
Analysts noted that investor sentiment has yet to fully recover across the crypto ETP market. Total assets under management have risen by just 10 percent year to date. This suggests that the average investor has not seen meaningful gains once flows are accounted for.
Bitcoin Holdings Remain Substantial Despite Outflows
Despite sustained withdrawals, US Bitcoin ETFs still hold 6.1 percent of Bitcoin’s total supply. That equals roughly 1.29 million BTC, worth approximately $112.9 billion. BlackRock’s iShares Bitcoin Trust remains the largest holder with $67 billion in assets. However, the recent selling shows that Bitcoin’s weakness appears structural rather than temporary.
Bullish Price Target Draws Attention
The strong fund flows align with bullish price predictions for XRP. Analysts recently forecast that XRP could reach $8 in 2026, more than double its all time high of $3.65 reached in July. At current levels near $1.84, this implies upside of roughly 330 percent.
The bullish case centers on the resolution of Ripple’s legal battle with the SEC. That outcome removed a major overhang that had weighed on the token for years. However, XRP is currently down 2.5 percent over the past 24 hours, moving in line with the wider market decline.
Market Structure Requires Selective Approach
XRP benefits from regulatory clarity, new product launches, and high profile price targets. However, these advantages do not eliminate broader market risks. The $70 million weekly inflow shows that institutional money is willing to enter XRP at current levels. Whether that interest translates into sustained buying will depend on Bitcoin’s ability to stabilize and macro conditions remaining supportive.
The weakness in Bitcoin and Ethereum products serves as a reminder that even established crypto assets are not immune to shifts in sentiment. As a result, positioning in XRP should be viewed as tactical rather than strategic until broader market conditions improve.
Summing Up
The $70 million inflow into XRP linked funds is a meaningful signal in a market otherwise marked by retreats. However, it should not be interpreted as a sector wide recovery. Instead, it reflects calculated moves by investors tracking regulatory developments and differentiated narratives.
As the Ultrabrokers expert noted, this is a phase of selective positioning rather than broad market rotation. Whether XRP can reach the $8 target will depend on execution, market stability, and sustained capital attraction even as Bitcoin and Ethereum struggle.
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