XRP becomes main attraction again amid unprecedented surge in funds flows
The flow of funds into cryptocurrency investment products focused on XRP has reached an impressive milestone, according to the latest CoinShares report. Over the past week, a staggering $600,000 has been poured into XRP-oriented investments, marking one of the highest figures for the cryptocurrency this year.
This notable increase in investment is significant, as only twice before has XRP experienced weekly inflows surpassing this level. The first instance was at the beginning of the year, while the second occurred in late March. Interestingly, both of these previous occurrences coincided with XRP’s price surge of at least 11%. Similarly, this time, XRP has shown a remarkable rise of 11.2% in the past week, further validating the trend.
It is worth highlighting that this influx of funds into XRP-oriented investment products has occurred against the backdrop of a challenging market environment. In contrast to XRP’s success, digital asset investment products experienced outflows totaling $62 million, extending the seven-week streak of continuous outflows that now amount to $329 million.
However, James Butterfill from CoinShares believes that these outflows do not indicate long-term negative sentiment for the market. Instead, he suggests that investors have been capitalizing on profits and exiting short positions.
Nevertheless, recent data regarding XRP signals highly positive sentiment among investors toward this particular cryptocurrency. The substantial increase in fund inflows reflects growing confidence and interest in XRP’s potential as an investment option for more traditional players.