Bitcoin Bleeds as XRP and Solana Attract Crypto Investment Inflows in Shifting Market

Such slowdowns have historically hinted at potential shifts in investor sentiment, possibly signaling that the market is nearing a bottom.

Assets under management (AUM) fell to $129.8 billion, the lowest level since March 2025, following U.S. tariff announcements.

Despite the outflows, exchange-traded fund (ETF) trading volumes surged to a record $63.1 billion, surpassing the previous high of $56.4 billion in October of the previous year, reflecting heightened market activity.

There was notable dispersion across assets: Bitcoin (BTC) drove outflows, while select altcoins like XRP, Solana (SOL), and Ethereum (ETH) attracted inflows, suggesting investors are diversifying amid uncertainty.

Bitcoin Leads, ETH Defies Market Odds

Bitcoin recorded $264 million in outflows over the week, making it the primary driver of the overall market’s net outflows.

This continues a trend of negative sentiment, as Bitcoin was the only asset highlighted with outflows in the report.

Compared to the broader market trend, where total outflows slowed sharply, Bitcoin’s outflows did not show signs of easing, indicating persistent pressure.

The asset’s performance contrasts with the inflows into altcoins, suggesting a shift in investor focus away from Bitcoin amid heavy price volatility and external factors such as tariff announcements.

The reasons for this change appear tied to broader market uncertainty.

Market observers are showing caution toward Bitcoin while seeking opportunities elsewhere, potentially viewing it as overexposed to macroeconomic risks.

Ethereum attracted $5.3 million in inflows over the past week, in line with select altcoins.

This positive flow indicates a shift toward optimism, particularly given Bitcoin’s significant outflows and the broader slowdown in market-wide outflows.

The weekly inflows suggest a rebound or stabilization in investor interest compared to previous periods.

The underlying reasons may include Ethereum’s ongoing network upgrades and growing adoption in decentralized finance (DeFi), which could be drawing capital as investors anticipate long-term value in a maturing ecosystem.

This shift also reflects broader market dispersion. Ethereum is positioned as a core alternative to Bitcoin.

It benefits from risk diversification strategies during periods of economic uncertainty, such as tariff-related volatility.

Solana and XRP Show Strong Inflows

Solana saw inflows of $8.2 million over the week, highlighting a rare moment of positivity among altcoins.

This uptick may seem modest, but it stands out compared to Bitcoin’s continued outflows and the overall market slowdown.

The gains suggest growing interest in Solana after weeks of neutral or negative activity.

Investors are likely drawn to Solana because of its reputation for fast and low-cost transactions.

These features become especially appealing during times of market stress.

Additionally, as part of a group of altcoins attracting capital, Solana may be benefiting from portfolio rebalancing, with investors rotating into assets they see as undervalued or poised for growth.

XRP, on the other hand, had a standout week with inflows of $63.1 million, making it one of the top performers in the crypto space.

This adds to its year-to-date inflows of $109 million, positioning XRP as the most successful asset so far this year.

The renewed interest in XRP reflects a shift from the subdued activity seen in previous periods.

Alongside Solana and Ethereum, it’s attracting users looking to diversify away from Bitcoin during this volatile phase.

Factors such as XRP’s perceived resilience, regulatory clarity, and network upgrades may be contributing to its appeal.

Overall, the report highlights a broader trend: altcoins like XRP are drawing capital even as Bitcoin sees outflows.

Investors may be optimistic about XRP’s role in cross-border payments and its lower correlation with the wider crypto market, making it a strategic choice for diversification.