New reports reveal that institutional investors are pulling out of Bitcoin (BTC) and now moving funds into Ethereum (ETH), Solana (SOL), and XRP. According to a new CoinShares report, ETH, SOL, and XRP are seeing strong inflows as investors take advantage of price dips, even as BTC experiences one of the largest weekly outflows of the year.
US Institutions Drive Largest Weekly Bitcoin Outflows
The CoinShares report, published on October 20, shows that digital asset investment products faced a tough week following the liquidity shock on Friday, October 10. Net outflows from crypto Exchange-Traded Products (ETPs) hit $513 million, marking one of the year’s largest weekly moves. This ultimately brought cumulative outflows since the liquidation event to $668 million, suggesting that ETP investors remained unfazed while on-chain investors turned more bearish.
CoinShares reported that most of the selling pressure was heavily concentrated in the United States (US), which alone saw $621 million leave the market, as institutional investors offloaded Bitcoin positions in massive volumes. While the US experienced significant outflows, other countries like Germany recorded inflows of $54.2 million, Switzerland saw $48 million, and Canada added $42.4 million, as investors in those regions used the price drop to buy the dip.
Bitcoin was hit the hardest during the liquidity cascade, recording $946 million in outflows, according to CoinShares data. The widespread sell-off came as confidence among US institutional investors weakened following the Binance liquidity incident and the US 100% tariff hike on Chinese imported goods.
CoinShares also disclosed that Bitcoin’s Year-to-Date (YTD) inflows now stand at $29.3 billion, falling short of the $41.7 billion recorded in 2024. Despite the sell-off, trading activity across the market stayed strong. Weekly trading volumes for digital asset ETP hit $51 billion, nearly double this year’s weekly average.
Investors Dump BTC For Ethereum, Solana, And XRP
While institutions dumped Bitcoin, Ethereum, Solana, and XRP saw a wave of institutional buying. ETH led the inflows, pulling in $205 million as investors took the cryptocurrency’s weakness and price decline as a buying opportunity. A 2x leveraged Ethereum ETP also saw inflows totalling $457 million, marking the largest weekly inflow according to CoinShares.
Solana and XRP followed closely, driven by growing anticipation over their potential ETP launches. CoinShares reported that SOL brought in $156 million, while XRP attracted $73.9 million in new inflows. These movements suggest that BTC is no longer dominating institutional portfolios and investors are growing increasingly bullish on the long-term potential of Ethereum, Solana, and XRP.
According to the latest data from CoinMarketCap, the Bitcoin price has dropped over 3% and is currently at around $107,589. Ethereum has also declined by more than 4.8%, trading at $3,864, while Solana and XRP have fallen to $183 and $2.42, down by 4.78% and 1.23%, respectively.
Featured image from iStock, chart from Tradingview.com
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