Recent data on fund flows among US-listed crypto investment products reveals a notable divergence in investor behavior as funds focused on Ethereum continue to lose billions of capital, and XRP-related products are seeing consistent inflows that now place them among the top performers in the Spot crypto ETF market.
Data from SoSoValue shows that this divergence has persisted over the past month, showing that investors are starting to favor XRP’s regulated crypto exposure on Ethereum.
Ethereum ETFs see billions exit in a month
According to SoSoValue data, Ethereum Spot ETFs having experienced sustained capital outflows over the past four weeks, with cumulative net outflows since early November amounting to $1.725 billion. November alone accounted for $1.42 billion of these redemptions, making it the worst month for Ethereum ETF flows since the products launched in the US in July 2024.
The intensity of selling was evident during several trading sessions in November, where daily outflows exceeded $250 million on several occasions. This negative dynamic continued into December with few signs of stabilization. Spot Ethereum ETFs extended their outflow streak, with the last two trading days alone seeing net redemptions of $224.78 million and $224.26 million, respectively.
At the same time, Ethereum’s spot price struggled to gain traction. Continued ETF outflows have coincided with moderate price action, with ETH fails to stay above $3,000.
Rather than seeing turnover among Ethereum products, the data shows that capital is leaving the Ethereum ETF complex altogether. This trend means that investors can reallocate their funds from ETH exposure to other assets, and XRP demonstrates the highest conviction.
Spot Ethereum ETF feeds. Source: SoSoValue
XRP ETFs See $1 Billion in Steady Inflows
The first US-listed Spot XRP ETF was launched on November 23 and momentum has been positive since then. At the time of writing, there are now five Spot XRP ETF issuers in the United States, and they have yet to see a collective day of releases.
In contrast, spot ETFs linked to XRP saw a full month of uninterrupted net inflows. This represents 22 consecutive trading days, with a cumulative influx of $1.01 billion since launch. This brought total assets under management to approximately $1.16 billion as of December 16.
Spot XRP ETF feeds. Source: SoSoValue
Brad Garlinghouse, CEO of Ripple describes 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 United States. This shows that institutional crypto investors are moving from Ethereum to XRP.
The divergence becomes even more pronounced compared to Bitcoinwhich has always dictated the rhythm of general influxes. According to data from SoSoValueSpot Bitcoin ETFs are seeing 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 come during a period of bearish prices for the entire crypto market, along with the XRP price. even breaking underneath the $2 support level.
Featured image created with Dall.E, chart from Tradingview.com
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