ETFs linked to XRP have defied the broader market selloff with net inflows of over $1 billion. We believe that Ethereum will be under significant downward pressure due to the withdrawal of whales. The overall market continues to deteriorate due to tight liquidity.
Cryptocurrency prices fell further on Tuesday, with Bitcoin falling towards $85,000.
The value of all digital assets fell 3% over the past day to $2.96 trillion.
Even fundamentally sound projects are unable to sustain long-term gains, and sentiment is worsening daily due to thin liquidity.
Amid the bleak outlook, investors have become more defensive, with institutional investors reducing exposure in favor of the narrative that currently governs the situation.
In this case, this divergence is seen in the major altcoins: XRP and Ethereum.
Let’s find out more.
XRP Spot ETF inflows exceed $1 billion
Ripple’s token is marking a rare corporate victory amid a broader market decline.
Cumulative inflows into exchange-traded funds linked to XRP totaled $1 billion, according to SoSoValue data.
This marks an important milestone for the product, which was launched on November 13th.
In particular, the XRP ETF has consistently recorded daily inflows since its debut.
The large amount of inflows in a short period of time shows that professional investors are narrowing their focus and have not completely retreated from cryptocurrencies.
XRP’s compliant ETF structure makes it attractive to institutions seeking cryptocurrency exposure without having to deal with operational risk or custody.
Most importantly, inflows suggest a long-term positioning strategy rather than chasing short-term price movements.
Why XRP stands out
The institutional appeal of XRP lies in its increased regulatory clarity and clear use cases.
Narrative is most important in bearish sessions.
In fact, traditional investors will legitimize a payments-focused blockchain ecosystem sooner than a highly speculative or experimental narrative.
In addition, ETFs provide transparency, compliance, and liquidity, which is critical for businesses seeking risk management.
These features have been valuable during times of market volatility, and have helped XRP-related products absorb pressure as rival companies endure capital outflows.
Meanwhile, XRP is trading at $1.92 after falling 7% last week.
ETH takes a hit from massive sell-off
While the XRP community rejoices at the incredible inflow, Ethereum is facing immense selling pressure as large holders reduce their exposure.
According to Lookonchain, BlackRock deposited 47,463 ETH worth approximately $140 million to Coinbase Prime.
The market is interpreting this trade as preparation for a sell.
At the same time, the wallet linked to Konstantin Romashuk sold 14,585 tokens worth approximately $42.71 million today when ETH changed trade at $2,928.
Also, Lookonchain revealed two whales who dumped around $40.82 million worth of Ethereum, 14,000 tokens early today.
The scale and timing of these transfers reinforced bearish sentiment towards the largest altcoin.
These trades overlap with an already fragile market, amplifying the downward momentum of ETH prices.
Ethereum is trading at $2,928 after falling 3% and 6% over the past day and week.
