As XRP continues to show signs of a major price breakout, institutional demand for the asset has increased amid the broader market resurgence.
Though mild, the XRP ETFs have maintained a steady influx of fresh capital in recent days, causing them to close the week on a positive note.
XRP ETFs record $15.74 million in weekly inflow
Latest data from popular ETF tracker SosoValue shows that the XRP ETFs have recorded a decent net inflow of $15.74 million over the last week.
While this is quite low compared to the amount recorded in the previous week, it marks an extension of the positive weekly ETF flows that began in the second week of April.
As such, the XRP ETF market has now achieved a steady inflow streak for three consecutive weeks, signaling growing confidence among investors in the XRP-based investment product.
While the inflow seen this week is pretty mild, the extensive positive weekly performance suggests that momentum is building and the growing demand from institutional investors could propel XRP to reclaim the long-lost $2 level.
XRP supply tightens
The steady inflow seen across the XRP ETF market is a sign that more XRP tokens are being demanded by institutions and buying activities are currently on the rise.
While this coincides with the increase in XRP outflows seen across multiple exchanges, it appears that both retail and institutional investors are doubling down on the asset.
If the surging demand for XRP continues to persist, market experts have predicted that the asset may face a supply crunch soon, leaving traders with fewer coins to sell.
Dan Burgin
U.Today Editorial Team
