Key Points:
- XLM-based products experienced a 62.7% increase in investments, reaching $17.3 million in assets under management (AUM).
- Grayscale’s XLM product saw a premium of over 330%.
- XRP-based products recorded a 33.2% increase in AUM, reaching $65.7 million.
- SOL-based products saw a 55.7% increase in AUM, reaching $87.8 million.
- ProShares’ Bitcoin Strategy ETF (BITO) dominated volumes with $179 million in average daily volumes.
Investments in XLM, XRP, and SOL Products Increase
According to a report by CCData, institutional investors have increased their allocations to XRP, Stellar’s XLM, and Solana’s SOL products. XLM-based products saw a significant 62.7% increase in investments, reaching $17.3 million in assets under management. This surge was largely attributed to Grayscale’s XLM product, which recorded a premium of over 330%. Additionally, XRP-based products experienced a 33.2% increase in AUM, totaling $65.7 million, while SOL-based products saw a 55.7% increase, reaching $87.8 million. Despite market sentiment remaining tepid, these three cryptocurrencies have gained the attention of institutional investors.
Bitcoin Strategy ETF Dominates Volumes, Grayscale’s BTC and ETH Trusts Follow
In terms of product volumes, ProShares’ Bitcoin Strategy ETF (BITO) emerged as the leader with $179 million in average daily volumes. This represents a 2.96% increase from June. Grayscale’s bitcoin (BTC) and ether (ETH) trust products followed closely behind, with average daily volumes of $83.0 million and $31.0 million, respectively. BTC and ETH volumes increased by 29.7% and 60.4% compared to previous figures. Grayscale, which is owned by Digital Currency Group, continues to be a significant player in the crypto investment space.
Ripple’s XRP Ruling Brings Optimism to the Market
A recent ruling by a U.S. judge regarding the sale of XRP tokens on exchanges provided a favorable outcome for Ripple Labs and caused an uptick in XRP’s price. The ruling stated that the sale of XRP did not constitute investment contracts, alleviating some of the legal concerns surrounding Ripple’s ongoing battle with the U.S. Securities and Exchange Commission (SEC). Additionally, this ruling had a positive impact on SOL, cardano’s ADA, and other altcoins, as traders saw it as a favorable outcome for the overall crypto market. The crypto market has been navigating regulatory actions, particularly in the U.S., as it strives to recover from the challenges faced in the previous year.
Hot Take
The increased investments in XLM, XRP, and SOL-based products indicate growing interest from institutional investors in these cryptocurrencies. Despite market sentiment remaining tepid, these assets have shown resilience and potential for growth. The ruling in favor of XRP and Ripple Labs has provided optimism and caused positive price movements in the market. As the crypto market continues to navigate regulatory challenges, it is crucial to monitor the impact of legal developments on specific tokens and their respective ecosystems.
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