XRP Leads Altcoin Surge Amid Bitcoin Outflows

In an update by CoinShares, digital asset investment products recorded a net outflow of $508 million. This represents the money that left the crypto

The digital currency market has seen fear, uncertainty and doubt (FUD) following the Bybit hack, which caused volatility in the cryptocurrency space.

This has affected crypto investment in the last few days, with XRP outshining other assets.

CoinShares reported that digital asset investment products saw a net outflow of $508 million, representing the money that left the crypto sector from institutional investors. Surprisingly, Bitcoin was the major contributor to the net outflow.

On the other hand, XRP led with $38.3 million in inflows, suggesting investors are shifting their focus to altcoins with a specific interest in the coin.

According to analysts, XRP's strong inflows indicate growing confidence in its future, which could be due to its almost-concluded legal battle with the United States Securities and Exchange Commission (SEC).

Several asset managers have recently filed for XRP exchange-traded funds (ETFs). In a significant development, Brazil has approved the first XRP ETF, which also signals positive sentiment for the coin’s ecosystem.

Among other altcoins, Solana (SOL) recorded an $8.9 million inflow, while Ethereum (ETH) and Sui (SUI) saw inflows of $3.7 million and $11.47 million, respectively.

This move to altcoins signals a shift in investment patterns among investors.

Bitcoin (BTC) contributed the highest outflow as the leading digital asset, which recorded $571 million, indicating that investors pulled back significantly. The funds pulled out of Bitcoin appear to have been invested into the altcoins.

Regarding regional trends, the U.S. also had the highest outflow, with a massive $60 million. This development aligns with broader economic uncertainties in the financial sector.

However, crypto investment products from Germany and Switzerland saw inflows of $30.5 million and $15.8 million, respectively. Analysts say this inflow pattern shows that European investors have more optimism toward crypto than American investors.

Meanwhile, in terms of market performance, XRP is currently trading at $2.47, down by 3.38%, while BTC is down by 0.24% at $95,663.24.