Institutional Inflows Into XRP Surges 244% Amid ETF Speculation
January 16 2024 - 10:00AM
NEWSBTC
XRP has reacted positively since the launch of spot Bitcoin ETFs in
the US, both in its price and general market sentiment. At the same
time, recent data from CoinShares on the weekly inflow into digital
asset funds reveal that the positive sentiment flowed into
XRP-based investment products, with institutional investors
increasing interest amid speculations of whether a spot XRP ETF
might soon hit the market. As a result, weekly net inflows into XRP
jumped 244% last week, registering a total of $2.2
million. Institutional Investors Look To XRP Amid
Crypto ETF Hopes According to various reports, particularly one
from on-chain analytics platform Santiment, social media mentions
and popularity of XRP increased alongside Ethereum in the days
after the SEC gave the green light on spot Bitcoin ETFs.
Related Reading: Ethereum Bloodbath Incoming? Celsius’ $125 Million
Move Threatens ETH Price This isn’t surprising, as the approval of
these ETFs signalled a change in the crypto investment landscape,
leaving investors wondering whether we might see the US regulator
approving an XRP spot ETF soon. For instance, Valkyrie’s Chief
Investment Officer, Steve McClurg, noted that an XRP ETF could also
be approved in the near future. According to CoinShares data, the
speculation led to the crypto receiving a net inflow of $2.2
million last week, a dramatic 244% jump from $0.9 million recorded
in the week before. Notably, this inflow is significantly more than
the one recorded in the days following Ripple’s partial victory
against the SEC in court. Consequently, this year’s total inflow
into XRP-based products now sits behind only Cardano and Ethereum
among altcoins. Token price begins recovery | Source:
XRPUSD on Tradingview.com Inflow Into Asset Funds Post Bitcoin ETF
Fail To Break Record Digital asset funds recorded an enormous
inflow of $1.18 billion last week. While this number represented a
spike of 680% from the $151 million registered in the week before,
it failed to break the $1.5 billion record set at the launch of the
futures-based Bitcoin ETFs in October 2021. On the other hand,
trading volume was $17.5 billion last week, the highest weekly
volume on record. Related Reading: Bitcoin To Reach $1
Million In Days To Weeks, Crypto Analyst As expected, the majority
of last week’s inflow went to Bitcoin-based funds, with $1.14
billion. However, Bitcoin’s price has failed to meet expectations
after spot Bitcoin ETFs hit the market. At the time of writing, the
crypto is trading at $42,847 and is posting an 8% decline in a
7-day timeframe. Ethereum came in second place with $25.47
million in inflows last week. In terms of geographical location,
the United States dominated, seeing $1.24 billion of inflows last
week, while Switzerland followed with a $21 million inflow.
Featured image from U.Today, chart from Tradingview.com
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