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Massive capital outflows from Bitcoin (BTC) are rapidly shifting into XRP, signaling the full-scale onset of a major capital rotation within the cryptocurrency market.
According to crypto media outlet U.Today on February 16 (local time), James Butterfill, Head of Research at asset management firm CoinShares, stated in a recent report that while substantial funds exited Bitcoin, XRP experienced significant inflows. Over the past week, crypto investment products saw total net outflows of $147 million. However, XRP recorded net inflows of $334 million, effectively taking the lead in the market. This serves as a clear indicator that institutional investors are selling Bitcoin and reallocating their assets into XRP.
Bitcoin experienced $173 million in outflows last week, clearly reflecting weakened investor sentiment. In a broader environment where capital was leaving the market overall, XRP’s $334 million inflow stands out as highly unusual. As Bitcoin’s price correction drags on, investors appear to be choosing XRP—seen as having greater legal clarity and growth potential—as an alternative asset.
Within the altcoin market, XRP’s dominance has been unrivaled. Solana (SOL) recorded less than $1 million in inflows, while even Ethereum (ETH), which has spot ETFs, saw $14 million in outflows and struggled to gain traction. With this recent surge in capital, XRP emerged as the top-performing digital asset on a weekly basis. CoinShares analyzed that this trend reflects institutional investors’ portfolio rebalancing strategies.
Behind the institutional focus on XRP lies the evolving regulatory environment for cryptocurrencies in the United States. Having largely resolved securities-related risks through court rulings, XRP is regarded as one of the few assets capable of attracting institutional capital with confidence. The significant inflow during a period of heightened Bitcoin volatility suggests that XRP is increasingly being recognized not merely as a payment tool but as a major investment asset.
Ultimately, capital flows in the cryptocurrency market are shifting away from a Bitcoin-centric structure toward select altcoins. The inflow of over $300 million is expected to enhance liquidity within the XRP ecosystem, providing a strong foundation for future price support and potential rebounds. As global macroeconomic uncertainty persists, investors worldwide are closely watching the impact that this concentrated institutional shift toward XRP will have on the broader market.
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