In a recent report unveiled by CoinShares, XRP has once again demonstrated its dominance in the world of cryptocurrency-focused investment products, experiencing a significant surge in inflows. The digital asset, valued at a staggering $1.1 million for the week, has achieved one of its most impressive results this year.
CoinShares’ Digital Asset Fund, Flows Weekly Report, sheds light on the market dynamics and investor sentiment surrounding cryptocurrencies. The latest findings indicate a shift in preferences towards alternative coins (altcoins) following a recent price crash in the crypto market.
The report reveals that digital asset investment products witnessed minor outflows totaling $5.1 million. However, there was a slight reversal of fortunes towards the end of the week when news broke that one of the world’s largest asset managers had submitted an application for a Bitcoin Exchange-Traded Product (ETP) in the United States.
This development prompted minor inflows, though they were insufficient to offset the earlier outflows. As a result, the market witnessed its ninth consecutive week of outflows, amounting to an astounding $423 million.
Analyzing the regional trends, the United States and Germany emerged as the primary recipients of inflows, recording $3.7 million and $2.4 million, respectively.
Looking at the overall inflows year-to-date, the United States maintained its lead with a total of $147 million, while Canada lagged behind, experiencing outflows worth $277 million.
Interestingly, despite Hong Kong’s regulatory landscape showing signs of improvement, there have been no notable inflows into Exchange-Traded Products this year. At present, the total assets under management (AuM) in this sector remain relatively low at $39 million.
Ethereum Faces Outflows, XRP Takes the Spotlight
The previous week’s crash in altcoin prices stimulated investors to augment their positions, resulting in inflows of $2.4 million. Among the altcoins, XRP, Cardano, and Polygon attracted the most attention, securing inflows of $1 million, $0.6 million, and $0.2 million, respectively.
On the other hand, Ethereum experienced the largest outflows for the week, amounting to $5 million, while Tron and Avalanche saw outflows of $0.4 million each.
In addition to cryptocurrencies, blockchain equities faced a significant setback, with outflows reaching a notable $12.3 million. The report highlights that these outflows are the largest recorded since the emergence of FTX, a prominent player in the blockchain equities market.
The cryptocurrency landscape continues to evolve rapidly, with investors actively navigating the volatile market. XRP’s resurgence in investment products demonstrates its enduring appeal among traders and investors.
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