Bitcoin funds hemorrhaging cash but XRP is soaking it up — long XRP as the crypto rotation trade
Big institutional investors are yanking money out of Bitcoin funds at a record pace — nearly $3 billion gone in just 10 days. But XRP exchange-traded funds quietly attracted $131 million in May, making it the standout in an otherwise beaten-down crypto market.
Idea
Money is rotating out of Bitcoin and into XRP at an unusual pace. Bitcoin ETFs have been bleeding for 10 straight days, with almost $3 billion pulled out — the worst streak of 2026. Even Strategy, the company that's been buying Bitcoin nonstop for four years, just sold some. Meanwhile, XRP funds attracted $131 million in May, suggesting investors see something different there. When one corner of a market is getting dumped and another is quietly accumulating, that divergence often signals a shift. Buying XRP while hedging against Bitcoin weakness is a way to play this rotation without guessing the overall direction of crypto.