The crypto market witnessed a significant downturn last week, with outflows from exchange-traded products (ETPs) reaching an all-time high of $6.4 billion. Despite the widespread sell-off, XRP investment products defied the trend, recording fresh inflows and pushing total assets under management (AuM) to a new peak.

US Leads the Crypto Sell-Off

According to a recent CoinShares report, crypto ETPs suffered outflows of $1.7 billion last week, marking the fifth consecutive week of capital flight. The United States played a central role in the exodus, accounting for 93% of total outflows.

Bitcoin ETFs, including those from BlackRock, Grayscale, Fidelity, and Ark 21Shares, saw major withdrawals amounting to:

• $401 million (BlackRock)
• $134 million (Grayscale)
• $317 million (Fidelity)
• $68 million (Ark 21Shares)

This contributed to a staggering $978 million in Bitcoin outflows last week, bringing the five-week total to a negative $5.4 billion.

Altcoins and Blockchain Equities Suffer Losses

Ethereum and Solana weren’t spared from the sell-off, recording outflows of $175 million and $2.2 million, respectively. Even blockchain equity funds took a hit, with $40 million exiting the sector.

Meanwhile, Binance’s investment products faced a near-total wipeout after a key seed investor pulled out, leaving just $15 million in AuM.

XRP Defies the Downtrend

In contrast to the broader market trend, XRP emerged as a rare winner. The digital asset saw $1.8 million in fresh inflows last week, pushing its monthly total to $7.4 million. It ranked second only to Solana in net inflows.

For the year, XRP has attracted $212 million in investment, placing it among the top-performing assets:

• Bitcoin: $612 million
• Ethereum: $412 million
• XRP: $212 million

XRP investment products now hold a record-high $1.2 billion in total AuM, showcasing strong investor confidence.

Regulatory Developments Fuel XRP’s Growth

A key factor behind XRP’s rising demand is the potential resolution of Ripple’s long-standing legal battle with the US Securities and Exchange Commission (SEC). Reports suggest both parties are working toward a settlement, raising optimism in the market.

Additionally, speculation that the SEC may classify XRP as a commodity rather than a security has further boosted investor sentiment. If confirmed, this could pave the way for the approval of an XRP-focused spot ETF, potentially driving further institutional inflows.