XRP-focused products have shown significant inflows during a broader outflow from cryptocurrencies. This may indicate growing interest from institutional investors.
XRP ETP Inflows
XRP Exchange-Traded Products (ETPs) attracted $25 million in inflows last week, despite a $1.43 billion outflow from the broader cryptocurrency market. This resilience boosts institutional confidence in the asset, which maintains its market strength.
Roles of Ripple and Bitwise
Ripple Labs, led by CEO Brad Garlinghouse, and Bitwise Asset Management's CEO Hunter Horsley play key roles in this market. Ripple's legal victory reclassified XRP as a non-security, enhancing its appeal. As Hunter Horsley stated: > "At Bitwise, we believe blockchains will usher in new, apolitical monetary assets and permissionless applications for the 21st century. It’s why for the past seven years we’ve helped investors access the opportunities in the space, and we’re excited to continue that work with our filing for a Bitwise XRP ETP."
Regulatory Clarity and the Market
Market uncertainty persists despite positive inflows in XRP ETP. Institutional accumulation continues, indicated by $3.8 billion in spot purchases, amidst price volatility. Bitcoin experienced nearly $1 billion in ETP outflows, while Ethereum recorded mixed flows. The XRP Ledger (XRPL) is expanding its DeFi footprint, enhancing liquidity through Automated Market Maker (AMM) and stablecoin deployments.
The growth of XRP ETP inflows amidst a general outflow from the crypto market may signify a shift in institutional strategies. Analysts and experts are closely monitoring regulatory decisions and market integrations for future implications.
