Unveiling the Surge in XRP’s Institutional Popularity
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XRP Overtakes Ethereum in Institutional Conversations
In recent developments, XRP has become a focal point for institutional investors, surpassing Ethereum in discussions related to cryptocurrency assets. The growing interest is fueled by the impressive influx into XRP exchange-traded funds (ETFs), even as Bitcoin and Ethereum ETFs experience net outflows.
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Institutional Interest in XRP Outshines Other Altcoins
Grayscale’s Head of Research, Rayhaneh Sharif-Askary, highlighted during the XRP Community Day that XRP is often the second-most discussed asset after Bitcoin among institutional circles. This implies that XRP’s appeal is surpassing that of other altcoins, including Ethereum. Financial advisors report frequent inquiries from clients about the token, signaling a strong institutional interest.
Grayscale, a notable player in the crypto ETF market, offers an ETF for XRP, which has attracted substantial investments since its debut in November of the previous year. Major financial institutions like Goldman Sachs and Jane Street have already shown significant involvement in these ETFs. As per Goldman Sachs’ Q4 reports, they currently have investments in XRP funds from Bitwise, Franklin Templeton, Grayscale, and 21Shares.
Data from SoSoValue indicates that these ETFs collectively hold assets exceeding $1 billion, accounting for 1.17% of XRP’s market capitalization. Despite the prevailing negative trends in the crypto market, these funds have witnessed notable inflows, recording $46.69 million this month alone. In contrast, Bitcoin and Ethereum ETFs continue to experience outflows, with expectations of further net outflows.
According to crypto analyst X Finance Bull, the increasing demand for XRP among institutional investors may be a strategic position in anticipation of regulatory advancements. The analyst suggests that XRP could significantly benefit from the CLARITY Act’s enactment, with Ripple’s CEO, Brad Garlinghouse, predicting an 80% probability of the bill’s enactment by April.
XRP Leads in Year-to-Date (YTD) Fund Flows
Research from CoinShares reveals that XRP funds are at the forefront in terms of year-to-date (YTD) inflows, outpacing Bitcoin, Ethereum, and other crypto assets. XRP funds have amassed $148 million in YTD flows, whereas Bitcoin and Ethereum funds are experiencing YTD outflows of $1 billion and $458 million, respectively.
Solana funds trail behind XRP, with YTD inflows of $99 million. Last week, XRP funds continued to attract investments, whereas Bitcoin and Ethereum ETFs suffered losses. CoinShares data indicates XRP funds secured net inflows of $33.4 million, while Bitcoin and Ethereum ETFs saw outflows of $133 million and $85 million, respectively.
As of the latest data, XRP is trading at approximately $1.47, marking an increase over the past 24 hours, according to CoinMarketCap.
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