An exchange-traded fund (ETF) based on the XRP cryptocurrency has successfully raised $1.14 billion in net capital since its appearance on the US market.
Despite this constant flow of institutional investors, the virtual currency issued by Ripple It does not reflect a proportional impact on market prices and has maintained flat performance in recent days..
As reported by CriptoNoticias, five investment products currently dominate the offering on Wall Street, managed by the firms Canary Capital, 21Shares, Bitwise, Grayscale, and Franklin Templeton.
The dynamism of these financial products 28 consecutive days of capital inflows prove thatas shown in the image.
The movement was led by the Canary XRP ETF, which recorded cumulative net flows of $385 million. In total, These funds have total assets under management of $1.25 billion.Although this number is significant in terms of stock market adoption, it represents only 0.98% of the total circulation of digital currencies, which is equivalent to 99 billion units.
This small percentage explains why the market buying pressure did not lead to a significant increase in XRP price. After a slight weekly increase of 2%, it now stands at $1.83..
The size of the fund is still small compared to the total assets, meaning that the trading volume of the ETF is not enough to replace the global liquidity of XRP. Although institutional implementation on Wall Street is still in its infancy, The spot market continues to be dominated by supply and demand dynamics that are far greater than current production capacity. Absorption of listed funds.
