Now that Ripple has triumphed over the SEC in court, major players are eager to get their hands on XRP. According to recent data, institutions have been getting their hands on the cryptocurrency at a steady pace, as evidenced by the digital asset fund flows report.
Institutional XRP holdings are rising rapidly
In the days following Ripple’s partial victory in the SEC lawsuit, XRP volumes and prices rose dramatically as crypto traders rushed to the cryptocurrency in anticipation of a continued bull run. However, price stats from Coinmarketcap show that the euphoria has subsided, with XRP now down 13.39% in a monthly time frame. On-chain data has also shown that whales are dumping the token to make a profit, increasing selling pressure on the token.
On the other hand, the tide is turning for the once-controversial crypto among institutional investors as inflows into XRP digital asset funds steadily increase. This is evident from the weekly report on the digital capital fund flows by CoinShares, XRP saw $0.5 million in inflows last week.
Over the past 16 weeks, XRP has seen consistent inflows into crypto investment funds, accounting for 12% of all digital assets under management. Overall, XRP’s assets under management are up 127% since the start of the year, outpacing the growth of other popular altcoins such as Polygon and Cardano.
XRP price returns to $0.6256 | Source: XRPUSD on Tradingview.com
Investor attitudes towards crypto funds are growing
Cryptofunds have generally seen a shift towards positive investor sentiment. In the first week of the month, digital asset investment products saw outflows, with investors taking profits in recent weeks. Bitcoin alone saw outflows totaling $111 million, the highest since March. However, XRP witnessed an inflow of $0.5 million during this period.
According to the latest report, digital asset investment products would receive $29 million inflows for the week. Bitcoin would also return as the primary focus, with $27 million inflows following three previous weeks of $144 million outflows.
With the recent inflow, institutional investors are demonstrating their confidence in the future of XRP by increasing their asset holdings. In July, many digital asset funds saw a 57% increase in their XRP Exchange Traded Products (ETPs). fineqia, for examplesaw its XRP AUM rise from $49 million to $76.8 million.
The price of the token seems to have weakened in momentum in recent weeks, just like the rest of the crypto market. At the time of writing, XRP is down 0.60% in the last 24 hours and is trading at 0.625. Still, the mood around XRP feels decidedly more upbeat as investors expect a final decision in the Ripple-SEC lawsuit.
Featured image from iStock, chart from Tradingview.com