Retail Is Panic-selling XRP. Here's What Institutions Are Doing

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Crypto commentator X Finance Bull has highlighted a notable divergence between retail behavior and institutional capital flows in the digital asset market.

In a tweet accompanied by data visuals, he stated that while retail participants are panic-selling XRP, institutional money appears to be moving in the opposite direction.

His central claim is that XRP is attracting inflows at a time when Bitcoin and Ethereum are experiencing sizable capital withdrawals, a pattern he interprets as early institutional positioning rather than speculative activity.

According to the figures cited by X Finance Bull, Bitcoin recorded outflows totaling $1.61 billion, while Ethereum saw $353 million leave related investment products. In contrast, XRP posted a monthly net inflow of approximately $15.6 million.

Although comparatively modest, he emphasized that the direction of capital movement is more significant than the absolute size, particularly in a volatile and uncertain market environment.

ETF Data Shows Consistent Capital Movement Into XRP

The images attached to the tweet present monthly XRP spot ETF history data covering November 2025 through January 2026. The data shows net inflows of $666.61 million in November 2025 and $499.91 million in December 2025, followed by a further $15.59 million inflow in January 2026. Over these three months, cumulative net inflows reached $1.18 billion, with total net assets standing around $1.19 billion as of January 2026.

X Finance Bull used this data to argue that XRP remains one of the few major digital assets still recording positive inflows while leading assets register net outflows. He asserted that this pattern is unlikely to be random, particularly given the broader market weakness and reduced risk appetite.

Utility and Regulatory Developments Cited as Key Factors

In his commentary, X Finance Bull attributed institutional interest in XRP to fundamentals rather than short-term price action. He referenced XRP’s role in cross-border payments, describing the sector as a multi-quadrillion-dollar problem that remains inefficient and costly.

He further pointed to the progress toward regulatory clarity and the existence of established infrastructure as factors that may influence institutional allocation decisions.

He stressed that institutions typically avoid chasing market narratives during periods of instability, instead positioning capital in assets they believe are aligned with long-term utility and compliance expectations.

From his perspective, the current inflows into XRP suggest that some market participants are positioning ahead of a potential shift in capital allocation once broader market conditions stabilize.

Early Signals, According to the Commentator

X Finance Bull concluded that while the inflows are relatively small compared to historical peaks in the digital asset market, they could be an early rotation toward assets perceived as utility-driven.

He underscored that cumulative inflows of $1.18 billion over three months indicate sustained interest rather than a one-off allocation. His final message posed a direct question to market participants, asking whether they are aligned with what he characterizes as institutional positioning or moving against it.

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