- Asset management firm Coinshares has released a report showing net inflows in different cryptocurrencies, with XRP coming out as one of the top performers.
- The asset manager explains that the new interest has come from institutional investors – some of these could have been swayed by Ripple’s encouraging court developments.
New data from CoinShares has revealed that institutional investors are flocking into XRP. The report revealed that for the first time, assets under management (AUM) have risen to $64 billion. Of this, $233 million was added last week, making it the largest inflow since March. As expected, both Bitcoin and Ethereum were the highest inflow assets with $103 million and $65 million respectively. However, the most notable performer is XRP. The fourth-largest coin by market cap saw a $33 million inflow into its fund, doubling the total AUM in it to reach $83 million.
The report stated,
We believe this recent renewed appetite for digital assets is due to a combination of increasing acceptance from institutional investors, fears for inflation, and price momentum.
CoinShares observes unusual spread
The CoinShares team also highlighted the diversification of inflows which was unusual. Inflows were most notable in Bitcoin Cash with $4 million, Polkadot with $5 million, Binance which saw $3 million and Tezos with a remarkable $7 million. Some might argue that the diversity has resulted in Bitcoin’s dominance crumbling in the last few days. As Bitcoin’s dominance continues to fall, investors will be lured into altcoins that will continue to outperform the largest digital asset by market cap.
The firm further noted a higher trading turnover last week. This rose to $4.8 billion, a 59% increase from the previous year.
The Sec vs Ripple case will continue to have a major influence on XRP. As a result, investors’ sentiments will sway from bear to bull rapidly depending on proceedings. What is however clear now is that it is not just retail investors who are backing XRP in the long term. Institutional investors are awaiting the green light to go all-in on the digital asset. This has been the case for Bitcoin and Ethereum. Bitcoin has since tripled from its 2017 highs. Ethereum on the other hand at $2,600 is only $400 shy of doubling its value.
XRP price update
In recent weeks, XRP has been performing well rising as high as $1.96. In the last 24 hours, it has sunk into a bear trend, losing as much as 20%. Prices have since retracted to around $1.10 as the market witnesses a wider market sell-off.