Ethereum Funds Are Bleeding Billions, But XRP Sees Major Inflows, Are Investors Switching Sides?

bitcoinistPublished on 2025-12-18Last updated on 2025-12-18

Abstract

Recent data from US-listed crypto investment products reveals a significant divergence in investor behavior. Ethereum-focused spot ETFs have experienced substantial outflows, with $1.725 billion withdrawn since early November, including $1.42 billion in November alone—marking its worst month since launch. Outflows have continued into December, with ETH struggling to hold above $3,000. Conversely, XRP spot ETFs, launched on November 23, have seen 22 consecutive days of net inflows, totaling $1.01 billion and raising assets under management to $1.16 billion. Ripple CEO Brad Garlinghouse highlighted this as evidence of growing institutional demand for regulated crypto exposure, suggesting a shift from Ethereum to XRP. This trend persists despite broader market bearishness and XRP’s price falling below $2. Bitcoin ETFs also saw outflows of $3.915 billion since November, underscoring XRP’s relative strength.

Recent fund flow data across US-listed crypto investment products is revealing a notable divergence in investor behavior, as Ethereum-focused funds continue to shed billions in capital, and XRP-linked products are recording steady inflows that now place them among the strongest performers in the Spot crypto ETF market.

Data from SoSoValue shows that this divergence has persisted for the past month, showing that investors are beginning to favor XRP’s regulated crypto exposure over Ethereum.

Ethereum ETFs See Billions Exit In One Month

According to SoSoValue data, Ethereum Spot ETFs have experienced sustained capital outflows over the past four weeks, with cumulative net outflows since the beginning of November coming in at $1.725 billion. November alone accounted for $1.42 billion of those redemptions, making it the worst month for Ethereum ETF flows since the products launched in the US in July 2024.

The intensity of the selling was evident across several trading sessions during November, where daily outflows exceeded $250 million on a few occasions. This negative momentum has carried into December with little sign of stabilization. Spot Ethereum ETFs have extended their outflow streak, with the most recent two trading days alone recording net redemptions of $224.78 million and $224.26 million, respectively.

At the same time, Ethereum’s Spot price has struggled to gain traction. The continued ETF outflows have coincided with muted price action, with ETH failing to hold above $3,000.

Rather than seeing rotation between Ethereum products, the data shows capital leaving the Ethereum ETF complex altogether. This pattern means that investors may be reallocating funds away from ETH exposure into other assets, and XRP is showing the strongest conviction.

Spot Ethereum ETF Flows. Source: SoSoValue

XRP ETFs Record $1 Billion In Consistent Inflows

The first U.S.-listed Spot XRP ETF was launched on November 23, and the momentum has been positive since then. At the time of writing, there are now five Spot XRP ETF issuers in the US, and they have yet to have a collective day of outflows.

In contrast, XRP-linked spot ETFs have posted a full month of uninterrupted net inflows. This comes up to 22 consecutive trading days, with a cumulative inflow of $1.01 billion since launch. This, in turn, has pushed total assets under management to around $1.16 billion as of December 16.

Spot XRP ETF Flows. Source: SoSoValue

Ripple CEO Brad Garlinghouse described the growth of XRP ETFs as a signal of broader structural demand for regulated crypto products. He recently highlighted that XRP became the fastest crypto spot ETF since Ethereum to surpass $1 billion in assets under management in the US. This shows institutional crypto investors are switching sides from Ethereum to XRP.

The divergence becomes even more pronounced when compared with Bitcoin, which has always dictated the pace of general inflows. According to data from SoSoValue, Spot Bitcoin ETFs are on a combined outflow of $3.915 billion since the beginning of November.

Spot Bitcoin ETF Flows. Source: SoSoValue

What makes these numbers more interesting is that they are coming at a period of bearish price action for the entire crypto market, with the XRP price even breaking below the $2 support level.

Price pushes lower with pressure | Source: XRPUSDT on Tradingview.com

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The overarching goal of XRP 2.0 is to establish itself as a reliable and efficient platform enabling swift transaction execution while prioritizing enhanced privacy protections for its users. The project is promoted as a solution to many limitations faced by existing cryptocurrencies, proposing a system that can handle a higher volume of transactions with improved speed and privacy. This versatility positions XRP 2.0 as a significant contender in a marketplace riddled with various digital currencies. Who is the Creator of XRP 2.0? The identity of the creator behind XRP 2.0 has been flagged as ‘Wilbur.’ However, comprehensive details regarding Wilbur or their associated entity remain elusive. The anonymity of many cryptocurrency creators is not an uncommon phenomenon in the industry, often designed to maintain a degree of privacy and security. Who are the Investors of XRP 2.0? As of now, specific information related to the investment foundations or organizations supporting XRP 2.0 is not publicly available. In the cryptocurrency sector, the backing by reputed investors can significantly influence a project's credibility and success, yet the transparency regarding the financial supporters of XRP 2.0 has not been established. How Does XRP 2.0 Work? XRP 2.0 stands out by employing a combination of blockchain technology and advanced encryption algorithms that ensures secure and decentralized transactions. Its innovative structure includes unique features designed to foster user engagement and broaden functionalities beyond conventional cryptocurrency transactions. Among these features, XRP 2.0 incorporates AI-powered capabilities, such as text-to-image and text-to-speech functionalities. These additions are designed to enhance the interactive experience for users, promoting broader applicability across various sectors. 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1.3k Total ViewsPublished 2024.04.01Updated 2024.12.03

What is XRP 2.0

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