XRP has responded positively since the launch of spot Bitcoin ETFs in the US, both in terms of price and general market sentiment. At the same time, recent data from CoinShares on weekly inflows into digital asset funds shows that positive sentiment has flowed towards XRP-based investment products, with institutional investors gaining increasing interest amid speculation about whether it is a spot XRP ETF could hit the market soon. As a result, weekly net inflows into XRP increased by 244% last week, registering a total of $2.2 million.
Institutional Investors Look to XRP Amid Crypto ETF Hopes
According to several reports, especially one from on-chain analysis platform SantimentSocial media mentions and popularity of XRP increased along with Ethereum in the days after the SEC greenlit Bitcoin ETFs.
This isn’t surprising, as the approval of these ETFs marked a change in the crypto investment landscape, leaving investors wondering whether the US regulator would soon approve an XRP spot ETF. For exampleValkyrie Chief Investment Officer Steve McClurg noted that an XRP ETF could also be approved in the near future.
According to CoinShares dataspeculation led to the crypto receiving net inflows of $2.2 million last week, a dramatic jump of 244% from the $0.9 million recorded the previous week. It is striking that this influx is considerably larger than the registered one in the following days Ripple’s partial victory against the SEC in court.
As a result, this year’s total inflows into XRP-based products now trail only Cardano and Ethereum among altcoins.
Token price begins recovery | Source: XRPUSD on Tradingview.com
Inflows into asset funds after Bitcoin ETF fails to break record
Digital asset funds recorded massive inflows of $1.18 billion last week. While this number represented a 680% spike from the $151 million registered the week beforeIt has failed to break the record of $1.5 billion set by the launch of the futures-based Bitcoin ETFs in October 2021. On the other hand, trading volume last week reached $17.5 billion, the highest weekly volume ever.
As expected, most of last week’s inflows went to Bitcoin-based funds, worth $1.14 billion. However, Bitcoin’s price has not lived up to expectations after spot Bitcoin ETFs entered the market. At the time of writing, the crypto is trading at $42,847 and is down 8% in a span of seven days.
Ethereum came in second with an inflow of $25.47 million last week. In terms of geography, the United States dominated, with an inflow of $1.24 billion last week, while Switzerland followed with an inflow of $21 million.
Featured image from U.Today, chart from Tradingview.com
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