XRP Is Major Altcoin Winner in Digital Asset Investment Surge

Mon, 04/03/2023 - 16:15
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According to the latest weekly report from CoinShares, XRP led all altcoins in inflows last week. XRP-focused investment products saw inflows totaling $800,000 during the period under review. Although that was a third less than a week earlier, the result still puts XRP at the top of all cryptocurrencies, except Bitcoin (BTC).

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In total, there are now $53 million in assets under management in such products. Thanks to the new infusions of funds, cumulative inflows into XRP-oriented investment products have averaged $3 million since the start of the year. By comparison, that is $92 million more than the same BTC and $21 million more than Ethereum (ETH).

Ethereum concerns investors

Both of the market's largest cryptocurrencies can be seen to have more outflows than inflows at the moment. According to CoinShares analyst James Butterfield, while investor sentiment on BTC is rather supportive and there have been positive weeks lately, they are more wary of ETH.

In his view, this is due to an upcoming update to the Ethereum network called Shapella. As you know, the update should open up the possibility for everyone to withdraw their ETH from staking. This is expected to increase the supply of tokens on the market and put pressure on the price accordingly.

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However, not everyone agrees with this view, with former ARK Invest analyst Chris Burniske, for example, seeing Shapella as bullish for Ethereum.