# XRP ETFs Attract $35 Million as Bitcoin and Ethereum Funds Bleed $2 Billion in Late May
XRP exchange-traded funds have emerged as an outlier in a brutal month for crypto ETFs, pulling in $35 million between May 20 and May 29 while bitcoin and ether funds lost $2 billion combined.
The data, reported by CoinDesk, shows a sharp divergence in institutional appetite. While bitcoin and ether ETFs have suffered sustained outflows amid macroeconomic uncertainty and geopolitical tensions, XRP funds have quietly accumulated inflows — signaling that some institutional investors see value in the Ripple-linked asset even as the broader market retreats.
## The Divergence in Numbers
The $2 billion in combined bitcoin and ether ETF outflows over the nine-day period represents one of the worst stretches for the two largest crypto assets since spot ETFs launched in 2024.
Bitcoin ETFs, which had been the primary vehicle for institutional crypto exposure, saw the bulk of the outflows as BTC dropped below $73,000. Ether ETFs followed a similar pattern, with outflows accelerating as ETH traded near $2,000.
Against this backdrop, XRP ETFs added $35 million — a small number in absolute terms but significant given the market direction. The inflows suggest that some allocators view XRP as either undervalued relative to bitcoin and ether or as a portfolio diversifier with distinct risk factors.
## What’s Driving XRP Interest
Several factors may explain the divergence. Ripple’s RLUSD stablecoin recently crossed the $1.75 billion market cap milestone, signaling growing adoption of the Ripple ecosystem. The company has also been pushing regulators for favorable treatment of stablecoins in Treasury haircut calculations.
XRP itself has benefited from a clearer legal standing following Ripple’s partial legal victory against the SEC, which established that programmatic sales of XRP on exchanges did not constitute securities transactions. That legal clarity gives institutional investors more confidence than they have in many other crypto assets.
Additionally, XRP’s price remains well below its all-time highs, making it a potential value play for investors who believe the asset has room to recover.
## The Macro Context
The broader crypto market has been under pressure from multiple directions. Bitcoin fell below $73,000 in late May, dragged down by geopolitical tensions between the U.S. and Iran, the unwinding of leveraged positions, and sustained ETF outflows.
Monthly options expiry on May 29 saw $7.5 billion in bitcoin and ether contracts settle, with max pain levels above current spot prices — a dynamic that pushes prices down as market makers hedge their positions.
Against this macro headwind, XRP’s ability to attract any net inflows at all is notable.
## What This Means Going Forward
If XRP ETFs continue to attract inflows while bitcoin and ether funds bleed, it could signal a shift in institutional crypto strategy. Investors may start making granular bets on specific tokens based on legal profiles and fundamentals instead of treating bitcoin as the sole entry point.
The test will come in June. If the macro environment stabilizes and crypto ETF flows return to positive territory, XRP’s relative outperformance could accelerate. If the selloff continues, even XRP may not remain immune.
## FAQ
**How much did XRP ETFs attract in late May?**
XRP ETFs added $35 million in net inflows between May 20 and May 29, per CoinDesk data.
**Why are bitcoin and ether ETFs losing money?**
Bitcoin and ether ETFs lost $2 billion combined over the same period, driven by geopolitical tensions, macroeconomic uncertainty, and a market-wide risk-off sentiment that pushed BTC below $73,000.
**Is XRP decoupling from bitcoin?**
The divergent ETF flows suggest that some institutional investors view XRP as having distinct fundamentals — including Ripple’s legal clarity and stablecoin ecosystem — that make it a separate bet, not just a correlated altcoin.
