XRP’s Institutional Holdings Rise Despite Price Decline
Since Ripple’s recent legal victory against the SEC, institutional investors have shown increasing interest in XRP. Despite a decline in price, data from digital asset fund flows reports indicates a steady rise in institutional holdings of the cryptocurrency.
Key Points:
- XRP experienced a surge in volumes and prices immediately after Ripple’s partial legal victory.
- However, the initial excitement has subsided, with XRP now down 13.39% in the past month.
- On-chain data reveals that whales have been selling the token to secure profits, adding to selling pressure.
- In contrast, institutional investors have been increasing their holdings of XRP, with consistent inflows into digital asset funds over the past 16 weeks.
- XRP now accounts for 12% of all digital assets under management, with a 127% increase in assets since the start of the year.
Investor Sentiment and Inflows into Crypto Funds
The overall sentiment towards crypto funds has shifted positively, as reflected in recent inflows. While Bitcoin witnessed significant outflows, XRP saw inflows of $0.5 million in the first week of the month. In the latest report, digital asset investment products received $29 million in total inflows, with Bitcoin being the primary focus.
Institutional Confidence in XRP’s Future
Institutional investors are demonstrating their confidence in XRP’s future by increasing their asset holdings. XRP’s Exchange Traded Products (ETPs) have seen a 57% increase in digital asset funds, with companies like Fineqia experiencing a significant rise in XRP assets under management.
Despite recent price declines, investors remain optimistic as they anticipate a final decision in the Ripple-SEC lawsuit.
Hot Take:
While XRP’s price may have faced downward pressure, the increase in institutional holdings and positive sentiment towards crypto funds indicate a growing belief in the potential of XRP. As the Ripple-SEC lawsuit progresses, the final outcome could have a significant impact on XRP’s future performance.
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