According to a fresh weekly report from CoinShares on funds flows into crypto-oriented investment products, inflows into those tied to XRP rose by more than 33% in the past week. In the past seven days, they have reached $400,000, which brings the year-to-date net flow figure to $1 million.
Only investment products focusing on Polygon (MATIC), Solana (SOL) and Short Bitcoin — which are betting on a fall in the BTC price — were able to show the same result or better. This is despite the fact that there have now been $177 million outflows from this sector of the financial markets since the beginning of the year, which represents 40.87% of the total net flows for the whole of 2022.
No negative sentiment
Interestingly, outflows from crypto-oriented investment products continued despite the fact that the previous week ended with Bitcoin up 27.17% and total crypto market capitalization up $157.9 billion.
As CoinShares analyst James Butterfill reports, it is likely that such investor behavior is due to a need for liquidity rather than negative sentiment toward the market on investors' part. The need itself arose as a result of the banking crisis that engulfed regional financial institutions in the U.S. at the beginning of March, he notes.