Asset management firm CoinShares reported on the 22nd that XRP-based investment products dominated global cryptocurrency fund inflows last week. Amid ongoing market volatility and cautious investor sentiment, digital asset investment products recorded a net inflow of $6 million (~¥840 million) globally.
XRP products spearheaded this trend, attracting $37.7 million (~¥5.28 billion)—significantly outpacing other cryptocurrencies. Notably, this occurred despite XRP’s market price dipping ~1%.
Contrasting Trends Among Major Cryptocurrencies
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In contrast:
- Ethereum (ETH) products saw $26.7 million (~¥3.74 billion) in net outflows
- Bitcoin (BTC) ETPs registered $6 million (~¥840 million) in global net outflows
- Bitcoin short products experienced 7 consecutive weeks of outflows ($36 million/~¥5.04 billion total)
These figures reflect divergent investor sentiment, possibly indicating selective confidence in XRP’s future compared to other major altcoins. The growing interest in assets like XRP suggests broader market diversification.
Drivers Behind XRP’s Strong Inflows
Key factors contributing to XRP’s momentum:
- Superior liquidity and new leveraged investment products
- Optimism about potential XRP spot ETF approval by the U.S. SEC
- Institutional appeal due to clearer regulatory prospects
Meanwhile, reduced investments in ETH/BTC products correlate with macro events like stronger-than-expected U.S. retail sales data, which triggered $146 million (~¥20.44 billion) in broader market outflows.
Regional Inflow Patterns
- Switzerland-based funds led net inflows
- Followed by Germany and Canada
- U.S. funds faced significant outflows amid geopolitical/trade uncertainties
Year-to-Date Performance
- XRP inflows: $37.7 million (~¥5.28 billion), now just $1 million (~¥140 million) behind Ethereum’s $214 million (~¥30 billion) YTD total
- Declining BTC short positions signal fading bearish sentiment
XRP’s resilience in attracting institutional capital highlights shifting dynamics in crypto fund flows, where asset-specific liquidity and regulatory clarity are becoming decisive factors.
FAQ
Q: Why is XRP outperforming Bitcoin and Ethereum?
A: Combination of strong liquidity, new product offerings, and ETF approval hopes.
Q: What risks remain for XRP investors?
A: Macroeconomic factors and ongoing regulatory uncertainties could impact performance.
Q: How are institutional investors approaching XRP?
A: Many view it as a hedge due to its relative regulatory clarity versus other altcoins.
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Market sentiment remains mixed overall, reflecting crypto’s sensitivity to external economic conditions.