XRP Grows Amidst Mixed Crypto Market Sentiment and Ethereum Struggles

Cryptocurrency investment products saw a slight net inflow of $6 million last week, amidst fluctuating investor sentiment influenced by macroeconomic data, especially in the US. The US recorded significant outflows, while European markets exhibited positivity. Ethereum faced continued withdrawals while XRP gained notable inflows, reflecting diverging trends in the crypto market.

According to CoinShares’ latest report, crypto investment products experienced net inflows of $6 million last week. This movement indicates persistent uncertainty among investors, with differing sentiments observed across regions and various cryptocurrencies. Initial inflows were dampened by macroeconomic data from the US, significantly influencing fund flows mid-week.

James Butterfill, CoinShares’ Head of Research, reported that robust US retail sales data led to a notable capital outflow of $146 million mid-week, negating some of the earlier inflows. The United States witnessed the largest outflows, with a net withdrawal of $71 million from domestic investment products. Conversely, European markets showcased a more optimistic view, particularly with Switzerland receiving $43.7 million and Germany $22.3 million in inflows.

Bitcoin continued to dominate fund movement throughout the week. Overall, there were minor outflows of $6 million. Additionally, short Bitcoin products experienced outflows of $1.2 million, marking the seventh consecutive week of withdrawals, aggregating to $36 million now, which represents about 40% of total assets in these products.

Ethereum continued its downward trend with ongoing withdrawals, totalling $26.7 million last week. This brings its cumulative outflow since the start of this eight-week period to $772 million. However, Ethereum retains the second position in year-to-date inflows, with $215 million so far in 2024, signifying some long-term interest despite short-term sentiment.

In contrast, XRP experienced weekly inflows of $37.7 million, positioning it third in year-to-date flows behind Ethereum, totalling $214 million. XRP has demonstrated resilience in the face of market volatility, attracting investors who are diversifying their crypto portfolios, highlighting its growing appeal within the sector.