In the wake of Ripple’s successful defense against the SEC, the allure of XRP has seen a surge among major stakeholders. Recent statistics show that these institutions are steadily accumulating the cryptocurrency, as indicated in the digital asset fund flows report. This trend reflects the rapid rise in institutional XRP holdings.
The Ripple Effect on XRP
In the immediate aftermath of Ripple’s partial triumph in the SEC lawsuit, both the volume and price of XRP saw a significant uptick. Crypto traders flocked to the currency in anticipation of a continued bull run. However, Coinmarketcap’s price metrics reveal a decrease in this initial excitement, with XRP falling 13.39% within a month. On-chain data further underscores this trend, showing whales offloading their tokens to cash in, thereby intensifying the selling pressure on the token.
Shifting Tides for Institutional Investors
Contrary to this, institutional investors are increasingly drawn to the once beleaguered cryptocurrency. Inflows into XRP digital asset funds have been consistently on the rise. CoinShares’ weekly digital asset fund flow report states that XRP witnessed an inflow of $0.5 million last week. Over the past 16 weeks, XRP has consistently seen inflows into crypto investment funds, accounting for 12% of all digital assets under management. Overall, XRP’s assets under management have swelled by 127% since the year’s start, outpacing the growth of other prominent altcoins like Polygon and Cardano.
Changing Sentiments in Crypto Funds
The sentiment towards crypto funds is becoming increasingly positive among investors. In the month’s first week, digital asset investment products experienced outflows, with investors cashing in their recent profits. Bitcoin alone saw outflows totaling $111 million, its highest since March. In contrast, XRP saw inflows of $0.5 million during this period. The subsequent report showed inflows of $29 million into digital asset investment products in a week, with Bitcoin receiving $27 million after three consecutive weeks of $144 million outflows.
These recent inflows indicate institutional investors’ growing confidence in XRP’s future, as evidenced by their expanding asset holdings. In July, many digital asset funds reported a 57% increase in their XRP Exchange Traded Products (ETPs). For instance, Fineqia’s XRP AUM rose from $49 million to $76.8 million.
While the token’s price momentum seems to have slowed in recent weeks, mirroring the broader crypto market, the sentiment around XRP remains positive. At the time of writing, XRP has dipped by 0.60% in the last 24 hours and is trading at 0.625. Nevertheless, investors are optimistic as they await a final verdict in the Ripple-SEC lawsuit.
For those interested in tracking these market trends, the cryptoview.io application provides a comprehensive and intuitive platform.
