Cryptocurrency investment funds have experienced significant outflows totaling nearly $5 billion in the past month. However, CoinShares noted a glimmer of hope as the latest week witnessed a modest recovery in inflows, indicating a potentially positive shift in market sentiment.

Despite the turmoil, cryptocurrency exchange-traded products (ETPs) recorded a smaller $1.94 billion outflow last week, down slightly from the $2 billion recorded the week prior, as reported by CoinShares on Monday. The cumulative outflows over the past month have now reached $4.9 billion, marking the third-largest outflow period on record, following notable sell-offs in March and February 2018.

CoinShares highlighted preliminary signs of a market recovery, referencing $258 million in inflows during the latter days of the previous week, following seven consecutive days of redemptions.

XRP Outperforming the Market

Interestingly, XRP investment products have stood out amid the downturn, with ETPs for XRP reporting $89.3 million in inflows, even as the token experienced a 6.9% decline. In contrast, Solana ETPs saw $156 million in outflows.

Bitcoin suffered the most substantial outflows, totaling $1.27 billion, followed by Ether with $589 million. Meanwhile, smart money traders, classified as the most successful investors in the space, appear optimistic about XRP, demonstrating increased investments in long positions despite a bearish outlook on Bitcoin.

It remains to be seen how these trends will develop in the upcoming weeks.