Institutional investors are increasingly flocking to XRP after Ripple’s recent victory in its lawsuit against the SEC. Data from the digital asset fund flows report shows a steady increase in institutional holdings of the cryptocurrency.
Following Ripple’s partial win in the SEC lawsuit, XRP experienced a surge in volumes and prices as crypto traders anticipated a bull run. However, the excitement has since subsided, with XRP now down 13.39% over the past month. On-chain data also indicates that whales have been selling off their XRP holdings to secure profits, creating selling pressure on the token.
Despite these challenges, institutional investors are showing growing interest in XRP. According to CoinShares’ weekly report on digital asset fund flows, XRP saw $0.5 million in inflows last week.
Over the past 16 weeks, XRP has consistently attracted inflows into crypto investment funds, accounting for 12% of all digital assets under management. Overall, XRP’s assets under management have risen by 127% since the beginning of the year, outperforming other popular altcoins like Polygon and Cardano.
The positive sentiment toward crypto funds, in general, has also been on the rise among investors. Although digital asset investment products initially saw outflows at the beginning of the month, they have now started receiving inflows. Bitcoin alone witnessed outflows of $111 million, the highest since March. However, XRP defied the trend and attracted $0.5 million in inflows during the same period.
During the past week, digital asset investment products received a total of $29 million in inflows. Bitcoin regained its position as the primary focus, attracting $27 million in inflows after three consecutive weeks of $144 million outflows.
With the recent influx of capital, institutional investors are signaling their confidence in XRP’s future by increasing their asset holdings. In July, many digital asset funds saw a 57% increase in their XRP Exchange Traded Products (ETPs). For example, Fineqia reported that its XRP assets under management increased from $49 million to $76.8 million.
While XRP’s price has experienced some weakness in recent weeks, similar to the broader crypto market, the overall sentiment surrounding the token is more optimistic as investors anticipate the final decision in the Ripple-SEC lawsuit.
Disclaimer: This article is for informational purposes only and should not be taken as investment advice. The cryptocurrency market is highly volatile and investors should do thorough research before making any investment decisions.
