Solana says XRP is bucking the trend of investors pulling $415 million out of crypto due to Fed’s hawkish stance

Solana, XRP buck trend as investors pull $415 million from crypto amid Fed’s hawkish stance

Investors have begun to withdraw their money from digital assets investment products in 2025. This is a sign of a new investor attitude.

CoinShares reported that last week investors pulled out $415,000,000 from these products, a drastic reversal compared to the constant inflows of money since the US Elections in November 2024.

According to the report published on February 17, the product sales of $24.9 billion in 19 weeks has exceeded the $16.9 billion that was recorded during the 19-week period following the initial release. the launch of spot Bitcoin exchange-traded funds (ETFs) In January 2024,

James Butterfill, CoinShares’ Head of Research, attributed the recent outflows to concerns over potential hawkish monetary policies in the US and inflation data that exceeded expectations.

He explained:

“We believe these outflows were triggered by the Congressional meeting with Fed Chair Jerome Powell, who signalled a more hawkish monetary policy stance, coupled with US inflation data exceeding expectations.”

Bitcoin and Ethereum are leading outflows

Bitcoin suffered the most from the fall, with investors withdrawing $430 million in BTC related investment products. Butterfill pointed to Bitcoin’s sensitivity to interest rate expectations as a significant factor in the downturn.

Fidelity led with $282 Million. Ark 21Shares was next with $163 millions in withdrawals. Grayscale had $140 million leave its fund.

Ethereum was less volatile, with a smaller $7.2 million outflow. ETH, however, has maintained a high level of investor interest. This month, ETH received $785 in net inflows.

The US was responsible for the majority of outflows, which totaled $464 millions. Some European markets, however, remained resilient. Germany, Switzerland and Canada each reported inflows between $21 and $12.5 millions.

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Solana and XRP draw interest

Solana, which has been attracting new investments worth $8.9 Million, is gaining momentum while Bitcoin, Ethereum, and other cryptocurrencies are declining.

The surge is likely tied to growing anticipation around Solana-based ETFs, with multiple issuers — including Canary Capital, VanEck, 21Shares, and Bitwise — seeking regulatory approval from the US Securities and Exchange Commission (SEC).

XRP has also been performing well. It attracted new capital of $8.5 Million. The token is gaining momentum due to speculations about an XRP-based ETF. This has led to $161 million in inflows year-to date.

The activity of other blockchain assets was also positive. Sui’s network saw $6 million of inflows while the blockchain equity market attracted $20.8 million. This brings total inflows to $220 millions.

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leadzevs/ author of the article

LeadZevs (John Lesley) is an experienced trader specializing in technical analysis and forecasting of the cryptocurrency market. He has over 10 years of experience with a wide range of markets and assets - currencies, indices and commodities.John is the author of popular topics on major forums with millions of views and works as both an analyst and a professional trader for both clients and himself.