XRP investment products have attracted $37.7 million in inflows, signalling strong institutional interest, particularly as US funds experienced $71 million in outflows. XRP’s total inflows for 2023 now closely follow Ethereum, despite adverse market conditions affecting other cryptocurrencies. The Swiss market emerged as a leader in inflows, indicating a potential divergence between cryptocurrency and traditional equity markets. Furthermore, the introduction of Asia’s first XRP Tracker Fund by HashKey Capital underscores the growing institutional focus on XRP.
XRP investment products demonstrated robust growth, accumulating $37.7 million in inflows, which are now close to Ethereum’s totals for the year. Meanwhile, US-based funds faced significant outflows of $71 million, contrasting with Switzerland’s $43.7 million in inflows. Despite the broader crypto market struggling with only $6 million in net gains last week, XRP-based products have gained remarkable traction, illustrating a divergence in investor sentiment regarding different cryptocurrencies.
CoinShares reported that XRP investment products achieved inflows of $37.7 million within a single week, raising the total to $214 million for the year—just shy of Ethereum’s $215 million. During the same period, Ethereum suffered outflows of $26.7 million, while Bitcoin experienced a $6 million reduction in funds. XRP’s ability to draw in consistent investments indicates its rising popularity amongst institutional investors.
The market dynamics appear to have shifted due to improved liquidity and newly introduced leveraged investment tools, which could enhance XRP’s position for potential spot Exchange-Traded Fund (ETF) approvals from the US Securities and Exchange Commission. Conversely, Bitcoin has faced a continued downward trend with short products experiencing outflows for the seventh week running, resulting in $1.2 million withdrawn this week alone, equating to 40% of total assets in that timeframe.
Swiss crypto investment vehicles led global inflows, bringing in $43.7 million, with Germany and Canada following at $22.3 million and $9.4 million, respectively. In stark contrast, significant outflows from American funds have been attributed to market volatility, particularly related to economic stress caused by President Trump’s tariffs, igniting uncertainty in financial circles.
The market is showing potential early signs of decoupling between digital asset performance and traditional equities, with Bitcoin surging by 5.7% as the Nasdaq and S&P 500 indices dropped by 7.3% and 5.2% respectively. During this period, gold also rose to an all-time high of $3,500 per ounce, while the GMCI 30 index increased by 2.2%. Currently, XRP’s price stands at approximately $2.09, despite a minor decrease. HashKey Capital’s launch of Asia’s first XRP Tracker Fund marks a pivotal moment in increasing institutional interest in XRP across the region.
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