XRP Down 72% in Fund Flows: What’s Happening?

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As an analyst with over two decades of experience in the financial markets, I find myself intrigued by the recent trends in XRP-focused exchange-traded products. While last week saw a 72% plunge in investment, it’s important to note that inflows are still occurring, which is quite positive given the current market landscape.

Last week’s investment in exchange-traded products centered around XRP fell a significant 72%. This is based on the latest weekly report from CoinShares, which shows that investments dwindled from $700,000 to just $200,000 over the course of seven days.

As an analyst, I’d rephrase the given sentence as follows: While other crypto ETPs have stagnated or even experienced outflows, it’s encouraging to note that these inflows persist. For instance, investment products linked to Solana (SOL) are currently experiencing outflows totaling $38.9 million, which surpasses their year-to-date net result.

In other words, when it comes to investments focused on XRP in the recent round, a total of $22 million has been drawn since the start of the year. Notably, this surpasses the combined amount invested in BNB, Cardano (ADA), and Tron (TRX) during the same period.

XRP Down 72% in Fund Flows: What's Happening?

Conjecture

It’s probable that the decline in value was caused by the conclusion of a protracted legal dispute between Ripple and the Securities and Exchange Commission (SEC). This development was a substantial factor influencing XRP, as the cryptocurrency served as a key aspect in the court case.

After the ruling favoring Ripple and XRP, investor enthusiasm might have waned. However, it’s worth noting that inflows of capital seem to be exceeding outflows at this point.

Last week, there were approximately $30 million invested into digital asset investment products on average. At the same time, as economic data indicates that the Federal Reserve might not lower interest rates by half a percentage point in September, the trading volume for these investment products dropped close to 50% on a weekly basis.

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2024-08-19 15:04