Ethereum Bleeds $255M While XRP Gains $41M Amid ETF Hopes

Crypto investment products experienced a turbulent week as shifting market dynamics impacted inflows and outflows. Bitcoin (BTC) products saw $214 million in net inflows, while Ethereum funds lost $255 million. Meanwhile, Ripple (XRP) products attracted $41 million, driven by optimism surrounding potential ETF approvals.

XRP Resilient With ETF Approval Optimism

Macroeconomic developments and Federal Reserve decisions significantly influenced digital asset markets last week. Investors started the week allocating $1 billion to crypto products but reversed course midweek. Strong U.S. economic data and hawkish Fed minutes led to $940 million in withdrawals.

Ethereum funds suffered the largest losses, shedding $255 million as investor sentiment turned cautious. The asset’s price dropped 18% to $3,000, marking a two-month low. Analysts suggest diminishing hopes of Fed rate cuts contributed to Ethereum’s struggles.

XRP products stood out, gaining $41 million amid anticipation of a potential U.S. spot ETF approval. Market participants remain optimistic ahead of the regulatory deadline later this month. Bloomberg analysts suggest significant policy changes under new leadership could support XRP’s ETF prospects.

While Bitcoin’s price fell 10% to $91,600, XRP held steady at $2.43, showcasing relative resilience. Altcoin investors appear confident in XRP’s potential, with speculation driving increased inflows. Analysts predict that regulatory clarity could further strengthen XRP’s market position.

Ripple and Bitcoin Lead Amid Mixed Trends

Experts believe spot Bitcoin ETFs may see larger inflows this year as financial firms complete approval processes. Bitwise strategists predict institutional and governmental purchases could drive Bitcoin prices higher. Improved ETF adoption could bolster Bitcoin’s market performance, offsetting recent macroeconomic headwinds.

In 2024, Ethereum and Bitcoin products attracted $42.9 billion, reflecting strong demand for spot ETFs. This year, Bitcoin products have gained $797 million, while Ethereum has faced $274 million in net outflows. Market sentiment remains cautious, but potential regulatory shifts could revive inflows.

The crypto market faces mixed prospects as strong economic data limits price growth, yet regulatory changes offer hope. Bitcoin and XRP appear better positioned, while Ethereum struggles underselling pressure.