- SEC’s ETF approval caused interest to shift to BTC at the expense of XRP.
- The volume of XRP had its period of increase, but it could not match BTC.
Last week, Bitcoin [BTC] made headlines after the US SEC approved the first leveraged Exchange-Traded Funds (ETF). The development attracted the attention of investors, leading to the dominance of the king coin in the total inflow of digital assets.
Realistic or not, here it is XRP’s market cap in terms of BTC
BTC gets the focus; XRP stumbles
According to CoinShares’ fund flow report, investment products reached their highest level since July 2022 in the previous week. This amounted to $199 million, of which Bitcoin accounted for $187 million.
For context, the weekly publication covers the investment inflows and outflows of mutual funds and Exchange Traded Products (ETPs).
The rise in Bitcoin’s share thus implies that investor confidence was high.
CoinShares stated,
“We believe this renewed positive sentiment is due to recent announcements by high-profile ETP issuers that have filed for physically backed ETFs with the U.S. Securities & Exchange Commission.”
Unlike BTC, Ripple [XRP] was an asset starved of liquid input. Based on the report, XRP inflows accounted for $240,000, much less than Ethereum [ETH] And Solana [SOL].
Source: CoinShares
At one point, XRP had a stronghold of inflows. But the recent decline enthusiasm, according to his case with the SEC, has affected the token’s momentum.
While other altcoins didn’t fare too impressively, on their own Tron [TRX] And Cardano [ADA] lagged XRP’s performance. On the matter, CoinShares said:
“This turn in sentiment did not trickle down to altcoins with only very small inflows into XRP and Solana of US$0.24 million and US$0.17 million, respectively.”
Who will win the volume and price race?
However, there was a notable event with BTC and XRP in the same week. On several occasions, the volume of BTC increased significantly. The same thing happened with XRP as well.
However, the difference between the two statistics was not marginal. And at the time of writing, the volume of XRP was 815 million while BTC was 13.62 billion.
Source: Sentiment
Such high trading volume for BTC meant there was strong buying pressure. This demand pushed the price to exchange hands above $30,000.
For XRP, demand was not entirely significant in pushing the value above board. As a result, it managed only a slight increase in the past seven days, which has turned into a 1.44% decline.
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Finally, the introduction of Bitcoin-leveraged ETFs has certainly had an impact on the inflow of funds into XRP.
Subsequently, some investors who previously allocated money to XRP may now focus their investments on Bitcoin ETFs instead. This may remain the case unless some notable developments with XRP change.