XRP funds draw $1.77M as Bitcoin and Ethereum ETFs bleed $349M

XRP-linked investment products attracted $1.77 million in inflows even as Bitcoin and Ethereum funds hemorrhaged a combined $349 million, marking a rare divergence in institutional crypto flows.

XRP-linked investment funds drew $1.77 million in net inflows on May 28, lifting total net assets to about $1.12 billion, while US spot Bitcoin ETFs shed $228.88 million and Ethereum products lost $121 million, SoSoValue data show.

"The divergence suggests some institutional allocators are rotating within crypto rather than exiting entirely, favoring XRP exposure while reducing BTC and ETH positions," said a strategist at a digital asset management firm tracking ETF flows.

BlackRock's iShares Bitcoin Trust drove the bulk of Bitcoin outflows with $177.94 million in net redemptions, followed by Grayscale's GBTC at $26.19 million and Fidelity's FBTC at $19.16 million, according to SoSoValue. The nine-day Bitcoin ETF outflow streak has now pulled more than $2 billion from spot products since May 14. Ethereum products extended their own losing run with $121 million exiting on the same day.

The rotation comes as rising US Treasury yields pressure risk assets across the board. The 10-year yield stood at 4.57 percent, well above HSBC's 4.3 percent "danger zone" threshold, where risk-free returns begin competing with volatile asset classes. Bitcoin traded at $73,504, down 5.39 percent over the past seven days and roughly 42 percent below its October 2025 record above $126,000, according to BeInCrypto price data.

XRP Price Remains Under Technical Pressure

Despite the positive fund flows, XRP's price chart shows persistent weakness. The token traded near $1.28 on May 29, up about 2 percent on the day but still below its 100-day moving average at $1.40, which now serves as resistance. The 200-day moving average sits higher at $1.60.

A breakdown below the $1.20 support zone could open the door to a deeper decline toward $0.60, according to technical analysis from CryptoPotato. Reclaiming the 100-day EMA at $1.40 would be the first step toward stabilizing price action.

The disconnect between ETF demand and spot price is not unique to XRP. Bitcoin's spot ETFs have seen sustained outflows even as the asset's on-chain metrics show long-term holders continue accumulating, suggesting short-term institutional selling is being absorbed by retail and permanent holders.

What to Watch Next

The sustainability of XRP's fund inflows depends on whether the broader macro environment stabilizes. The next US Consumer Price Index print, the Federal Reserve's June meeting, and any escalation in geopolitical tensions will determine whether Treasury yields retreat from current levels. A pullback in yields could relieve pressure on risk assets broadly, while further increases may accelerate the rotation out of crypto ETFs entirely.

This article is for informational purposes only and does not constitute investment advice.