XRP news today: Investors Pour $3.4 Billion into Crypto Funds, Bitcoin Leads 93% Gain

Investors injected $3.4 billion into digital asset investment products last week, marking a significant rebound in the crypto market. This influx was driven by a surge in interest in spot Bitcoin exchange-traded funds (ETFs) as the market stabilized following weeks of turmoil. The week saw the third-highest inflows of all time for crypto funds, which include those tracking popular altcoins such as Ethereum, Solana, and XRP.

Prior to this surge, year-to-date inflows had been relatively modest, standing at just $171 million after a prolonged period of outflows. The recent influx brings the total year-to-date inflows to $3.5 billion, recovering from a low point of nearly zero. James Butterfill, Head of Research at CoinShares, described the situation as "cautiously optimistic."

Bitcoin was the primary beneficiary of last week's inflows, accounting for 93% of the total. This surge came as Bitcoin's price climbed above $95,000 for the first time since the announcement of "reciprocal" tariffs by U.S. President Donald Trump. Ethereum and XRP followed, attracting $183 million and $31 million, respectively.

Despite the strong week, year-to-date inflows are still below the peak of $7.4 billion seen earlier this year. This suggests that while the market is showing signs of recovery, it may need another week of significant inflows to fully regain its momentum.

Institutional participation in the crypto market has been increasing, with some institutions capitalizing on the difference between an asset’s spot price and its price in the futures market through a so-called basis trade. However, this increase has been modest recently, with individual investors taking the lead in allocations.

Last year, crypto funds attracted $29 billion, largely driven by the approval of spot Bitcoin ETFs in the U.S. However, the current economic uncertainty due to tariffs makes it unclear whether last year's rapid growth can be sustained.

The next round of 13F filings by institutional investment managers in mid-May will provide more transparency into their recent investment activities and holdings, offering a clearer picture of Wall Street's stance on the crypto market.