Institutional cryptocurrency investment products experienced outflows for the fourth consecutive week, totaling $173 million, according to the latest CoinShares report. Over the last four weeks, the cumulative outflow has reached a significant $3.74 billion. The data reveals a clear divergence in institutional sentiment, with capital rotating away from major assets like Bitcoin and Ethereum and towards select altcoins.
Bitcoin led the exodus with outflows of $133.3 million, marking its weakest market sentiment in this period. Interestingly, short positions in Bitcoin investment products also saw outflows of $15.4 million over the last two weeks, a pattern analysts note is common near market bottoms. Ethereum followed with substantial outflows of $85.1 million.
In stark contrast, XRP and Solana emerged as institutional favorites. XRP attracted inflows of $33.4 million, while Solana saw $31 million in positive flows. Chainlink also recorded a modest inflow of $1.1 million. This selective allocation signals a targeted risk appetite rather than broad market exposure.
Geographically, the United States was the sole region with net outflows, shedding $403 million. European markets demonstrated a more constructive stance, with Germany leading inflows at $114.8 million, followed by Canada ($46.3 million) and Switzerland ($36.8 million). This regional divergence aligns with on-chain activity, where the XRP Ledger is seeing increased utility for Euro-denominated stablecoins like EUROP.
On-chain data highlights the XRP Ledger's growing role in cross-border stablecoin settlements. Over a 24-hour period, the network recorded 477 "auto-bridging" events, with the EUROP/RLUSD (Ripple USD) pair being the most active corridor (124 events). This indicates strong demand for Euro-to-USD conversions within the XRPL ecosystem, with XRP serving as the primary bridge asset for 92% of all trades.
Meanwhile, the market remains cautious. Bitcoin is trading sideways in the $65,000-$70,000 range, with analysts warning of potential further declines. Ethereum trades near $1,960, facing headwinds from both outflows and technical resistance. The coming week's events, including ETHDenver and key U.S. economic data like the PCE report, are poised to influence market direction.
