Institutional appetite for major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and XRP has taken a notable downturn, according to the latest data from CoinShares. Despite growing political momentum around digital assets in the U.S., last week saw a significant decline in institutional inflows—raising questions about market sentiment amid broader macroeconomic and regulatory developments.
The drop in investment interest coincides with a sharp correction across the crypto market, with BTC, ETH, and XRP all posting substantial losses over the past 24 hours. Yet, paradoxically, retail and geopolitical enthusiasm for crypto appears to be rising, particularly following renewed commitments from former U.S. President Donald Trump to position America as a global leader in digital asset innovation.
👉 Discover how market shifts are shaping the future of digital assets.
Declining Institutional Inflows Despite Political Tailwinds
According to CoinShares’ weekly digital asset fund flow report, total inflows into crypto investment products fell to $1.9 billion last week, down from $2.2 billion the previous week. This cooling trend affects even the most prominent digital assets:
- Bitcoin inflows dropped from $1.9 billion to $1.6 billion
- Ethereum saw a decline from $246 million to $205 million
- XRP experienced a steep fall—from $31 million to just $18.5 million
These figures signal waning confidence among institutional investors at a time when regulatory clarity and executive support seem to be improving. The proposed creation of a National Digital Asset Stockpile, reportedly under consideration by U.S. policymakers, has sparked bullish speculation across the industry. However, institutions appear cautious, possibly awaiting concrete implementation details before committing further capital.
Notably, trading volume remained strong—hovering around $25 billion for the week—suggesting that while institutional buying slowed, overall market activity remains robust. Analysts believe this could reflect increased retail participation or strategic positioning ahead of potential policy changes that may include altcoins like Ethereum, XRP, and Hedera (HBAR) in national reserves.
Year-to-date inflows still stand at a healthy $4.8 billion, buoyed by early-year optimism surrounding regulatory reform and ETF approvals.
ETF Leaders and Outflows: A Mixed Picture
While overall institutional interest dipped, certain ETF providers continue to attract substantial capital. BlackRock’s iShares Bitcoin Trust (IBIT) remains the standout performer:
- iShares ETFs: $1.4 billion in weekly inflows, bringing month-to-date (MTD) flows to $2.9 billion with $64.6 billion in assets under management (AUM)
- Fidelity ETFs: $202 million in inflows
- ARK 21Shares ETF: $173 million in inflows
This demonstrates sustained confidence in spot Bitcoin ETFs, especially those backed by major financial institutions.
However, not all providers fared well. Four major funds reported outflows:
- Grayscale Investments: $124 million outflow
- Bitwise ETFs: $19 million outflow
- CoinShares XBT: $14 million outflow
- Volatility Shares Trust: $17 million outflow
Meanwhile, other smaller providers collectively added $180 million in inflows, bringing their MTD total to $92 million with over $33 billion in AUM.
Geographically, the United States led all regions with $1.7 billion in net inflows, reinforcing its dominance in crypto investment infrastructure. In contrast, **Sweden** was the only region to record an outflow—$5.7 million—highlighting regional divergence in investor sentiment.
👉 See how leading markets are responding to evolving crypto trends.
Market Correction: Why BTC, ETH, and XRP Are Falling
The broader crypto market experienced a sharp downturn recently, driven by multiple macroeconomic and technical factors:
- Upcoming FOMC meeting expectations
- Concerns over China’s DeepSeek AI model impacting tech valuations
- Profit-taking after recent rallies
Bitcoin Drops Below $100K
Bitcoin slipped below the symbolic $100,000 mark, falling 5.66% in 24 hours to trade at **$98,738.10. BitMEX co-founder Arthur Hayes has predicted a potential drop to $75,000** before a rebound fuels a new all-time high—a view gaining traction among long-term bulls who see this as healthy consolidation.
Ethereum Faces Pressure
Ethereum declined by 7.55% over 24 hours, now trading at $3,050. The drop extends to 9.44% weekly and 8.60% monthly, reflecting reduced momentum despite ongoing network upgrades and Layer-2 growth.
XRP Plunges Amid Regulatory Uncertainty
XRP suffered the steepest decline—down 11.15% to $2.77**—with some analysts warning of a potential slide toward **$2.00. However, experts remain largely bullish, citing Ripple’s expanding stablecoin initiatives and progress in the SEC lawsuit as fundamental strengths.
Frequently Asked Questions (FAQ)
Q: Why are institutional inflows decreasing despite positive regulatory news?
A: While political support—like Trump’s push for a national crypto reserve—is encouraging, institutions often require finalized regulations and clear custody frameworks before increasing exposure. Many are likely adopting a “wait-and-see” approach.
Q: Is the drop in Bitcoin below $100K significant?
A: Psychologically, yes—but technically, it's part of normal market volatility. Historically, BTC has rebounded strongly after similar pullbacks post-ETF approval and halving events.
Q: Could Ethereum regain momentum soon?
A: Yes. With increasing adoption of Layer-2 solutions and upcoming protocol improvements, ETH fundamentals remain strong. A breakout could follow renewed institutional interest or favorable ETH ETF decisions.
Q: What does the XRP price drop mean for Ripple’s future?
A: Short-term price movements don’t reflect Ripple’s operational progress. The company continues expanding its payment network and launching new products like RLUSD, suggesting long-term viability.
Q: Are outflows from Grayscale permanent?
A: Not necessarily. Grayscale’s GBTC has seen consistent outflows since the launch of competing spot ETFs, but these are expected to stabilize as the market matures.
Q: How reliable is CoinShares’ fund flow data?
A: CoinShares is a trusted source in digital asset research, tracking institutional flows across major markets and providers with transparent methodology.
👉 Stay ahead of market movements with real-time insights.
Final Thoughts: Volatility Meets Opportunity
While institutional interest in Bitcoin, Ethereum, and XRP has cooled temporarily, the underlying drivers for long-term adoption—regulatory evolution, technological innovation, and macroeconomic demand for decentralized assets—remain intact.
The current dip may present a strategic entry point for investors who understand that crypto markets thrive on cycles of fear and greed. As political support grows and infrastructure matures, digital assets are poised for renewed institutional engagement—possibly sooner than expected.
For now, patience and due diligence are key. Whether you're watching ETF trends, price action, or global policy shifts, staying informed is the best way to navigate this dynamic landscape.
Core Keywords: Bitcoin, Ethereum, XRP, institutional interest, crypto market crash, ETF inflows, digital asset stockpile, CoinShares