XRP draws $15.8M inflows as 401(k)s open door to crypto

Investors are gravitating towards XRP investment vehicles. According to CoinShares, XRP funds just pulled in a solid $15.8 million in inflows last week. This comes at a time when the US government is taking steps to allow 401(k) plans to expand into digital assets and private equity.

The US Department of Labor just proposed a new rule that would allow 401(k) plans to diversify into “alternative” investments, such as crypto, private equity, and real estate. The new proposal follows a mandate from President Trump’s August 2025 executive order, which tasked regulators with making assets like crypto and private equity more accessible to 401(k) savers.

XRP’s massive inflow positions it among the top-performing altcoins in recent fund flow data, reversing prior periods of mixed sentiment.

Bitcoin, Ethereum, and Solana funds saw over $414 million in outflows

It was a rough week for most crypto funds, but XRP stood its ground. According to CoinShares, XRP funds saw nearly $16 million in inflows last week, while the broader crypto investment products, including those tied to Bitcoin and Ethereum, bled out $414 million. 

Analysts note that XRP has benefited from its positioning as a payments-focused asset and from renewed speculation that broader adoption could follow regulatory easing in the US financial system.

The US accounted for the vast majority of last week’s capital flight, with Ethereum seeing the worst of the sell-off, recording $222 million in outflows. Bitcoin funds were also down $194 million, and Solana trailed with $12.3 million in total outflows.

James Butterfill, CoinShares’ head of research, showed in his report that most investors pulled out because they’re worried the Iran-US conflict is escalating and that inflation levels are still expected to rise, raising the likelihood of a June rate hike rather than a cut.

At the moment, the US and Iran have not settled on a middle ground. President Trump has attempted to call for a truce and has given Iran a list of demands. However, Tehran says it’s not clear on Washington’s position, claiming that while they call for negotiations, they are secretly planning a ground invasion. Nonetheless, Pakistan said it is ready to host talks between the US and Iran.

While the Middle East conflict contributed to most of the outflows, Butterfill, though, argued that Ethereum’s specific dip last week was a direct reaction to the “Clarity Act.” Lawmakers are still divided on some of the bill’s clauses.

After the latest round of outflows, the total value of crypto assets under management has retreated to $129 billion, effectively erasing the gains made since early February.

Asset managers showed interest in crypto and private equity 401(k) plans

Lately, institutional interest in alternatives like crypto has hit a bit of a plateau, prompting heavyweights like Blackstone to look for their next big growth spurt in the workplace retirement sector. 

For starters, Apollo’s Mark Rowan has been actively pushing for private assets in 401(k)s, while Empower has already built a network of managers and custodians to offer these “alts” through collective investment trusts. Thus, if the Labor Department’s proposal goes through, it would significantly change how retirement plans are structured.

“This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today,” Labor Secretary Lori Chavez-DeRemer stated.

President Trump first shared his vision to open 401(k)s to private equity and crypto in his first term. However, that attempt was short-lived as Biden rescinded the order when he took over. Last year, however, in May, Trump revisited his plan, and the Labor Department pulled back on its “extreme care” warning, essentially telling 401(k) managers they no longer have to treat crypto as a uniquely dangerous investment but rather as more similar to other traditional investment options. 

Currently, not everyone is on board with the Labor Department shift. The new proposal is already facing heat from several politicians and financial experts. Senator Elizabeth Warren even remarked, “As cracks emerge in the private credit market, private equity returns fall to 16-year lows, and crypto keeps tumbling, President Trump has decided now is the time to stick all of these risky assets into Americans’ 401(k)s.” She cautioned that while Wall Street giants stand to profit, everyday workers could end up losing their money. 

There’s a middle ground between leaving money in the bank and rolling the dice in crypto. Start with this free video on decentralized finance.