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XRP Takes Breathtaking Twist: Millions Came, But This Week, It's Zero

Mon, 09/04/2023 - 13:56
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Gamza Khanzadaev
Inflows to XRP take dramatic U-turn after busy few weeks
XRP Takes Breathtaking Twist: Millions Came, But This Week, It's Zero
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In a surprising turn of events, inflows into XRP-focused investment products have hit a sudden roadblock, registering a zero in the latest weekly report released by CoinShares. This abrupt halt comes on the heels of a remarkable streak that saw $2.7 million flowing into these XRP-oriented products over the past four weeks since the start of August.

Ripple Sells Tens of Millions of XRP at a Loss – Price Drops After Recent Rise

Since the inception of XRP-focused exchange-traded products (ETPs), the cumulative inflow has surpassed a staggering $13 million, securing its place as one the most favored choices among crypto-oriented investment products. Only Bitcoin (BTC), Short Bitcoin and Solana (SOL) have outshone XRP in popularity among traditional investors.

Source: CoinShares

However, it is not just XRP that finds itself caught in the undertow of diminished inflows. According to insights from James Butterfill at CoinShares, the entire digital asset investment product market has experienced a cooling trend, with only relatively minor outflows totaling $11.2 million.

Sentiment issues

Despite the temporary dip in inflows, the year-to-date statistics for digital asset investment products remain robust, showing a net inflow position of $165 million. This year has witnessed substantial fluctuations in investor sentiment, largely influenced by regulatory developments in the digital asset space. The past week epitomized this volatility as high hopes for a spot ETF approval in the U.S. gave way to disappointment with the announcement of a delay for all other spot ETF applications.

Former SEC Chair Says Spot Bitcoin ETF Approval Is 'Inevitable'

Interestingly, while inflows remained muted, trading volumes soared to exceptional heights, totaling $2.8 billion for the week, marking a staggering 90% increase over the year-to-date average.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.