XRP Gains Institutional Favors as Bitcoin Loses Ground

Institutional money has been flowing out of Bitcoin and Ethereum spot exchange-traded funds (ETFs) in favor of XRP ETFs, a trend that has persisted for six consecutive weeks. According to recent flow data, United States spot Bitcoin ETFs saw an outflow of $1.44 billion in a single week, the largest weekly outflow of 2026, while Ethereum funds lost hundreds of millions. In contrast, XRP funds have been logging net inflows since their launch in November 2025, accumulating around $1.44 billion.

The rotation is not random; institutions are attracted to XRP due to its improving regulatory position. After Ripple's legal battle with the SEC ended favorably and XRP gained clearer regulatory status, including agency-level commodity treatment in early 2026, it became one of the few major altcoins with relative regulatory clarity. This clarity is a key driver behind institutional demand.

The flows are responding to a real and specific case for XRP, driven by factors such as its distinct use case in cross-border payments and settlement, expanding partnerships with major financial infrastructure players, and a novelty premium as the newer XRP ETFs offer a regulated wrapper for investors seeking exposure. However, it's essential to note that the XRP inflows are tiny compared to the Bitcoin outflows, amounting to around $1.44 billion total since their launch.