XRP captured 53% of the $224 million inflows into cryptocurrency investment products last week, marking a significant shift in institutional demand away from Bitcoin, according to market data analyzed by industry sources. The Ripple-affiliated token’s surge comes as regulatory developments appear to favor its position in ongoing SEC litigation.
Analysts note this represents the first time since 2020 that any altcoin has surpassed Bitcoin in institutional inflows. ‘We’re seeing a flight to regulatory certainty,’ said one London-based fund manager who requested anonymity due to compliance policies. ‘XRP’s partial legal victory in July created a safe-haven effect.’
The inflows coincide with growing anticipation about potential SEC approval for XRP-linked financial products. Bloomberg Intelligence reports at least three asset managers have filed preliminary paperwork for XRP ETFs. However, SEC officials declined to comment on pending applications.
Market observers caution that the trend may reflect short-term positioning rather than long-term conviction. ‘This could be arbitrage activity ahead of key court rulings,’ noted CoinShares’ head of research, pointing to unusual derivatives activity. The next pivotal hearing in Ripple’s case is scheduled for November 14.