The spot exchange-traded fund (ETF) for the US cryptocurrency XRP closed for 18 consecutive days without recording a negative net flow.
These financial products have managed to endure since their debut. Positive daily balance accumulating USD 955 million Negotiations took just over two weeks. This performance stands in contrast to the volatility typically exhibited by newly listed products on Wall Street.
The following graph shows the performance of the XRP ETF since its debut.
Currently, five XRP spot ETFs are traded on US exchanges NYSE, NASDAQ, and Cboe. Some of the publishers include well-known managers such as Grayscale, Bitwise, Franklin Templeton, Canary, and 21Shares. These companies have chosen to expand their offerings of products linked to digital assets beyond Bitcoin (BTC).
Inflows into XRP ETFs are moderate
However, the daily flows recorded are still moderate. These ETFs have $939 million in net assets under management, which is still much lower when compared to Bitcoin ETFs. 119.9 billion dollars will be concentrated in these areas. This difference explains why. These funds have limited impact on the price of XRP.
As evidence of this, Ripple Labs’ native cryptocurrency, XRP, has fallen 17% since November 13 of last year. This was the day the XRP ETF debuted on the stock market. This is shown in the graph below.
Currently, analysts consulted by CryptoNoticias, such as Eleazar Colmenares, CEO of Cryptobuyer Venezuela, are adamant that the ETF promises significant capital inflows into XRP. For him, “ETFs are a gateway” because they allow investors to get exposure to cryptocurrencies “without having to understand each protocol or digital wallet.”
The performance of these products will be closely monitored over the coming months. Its evolution could provide a signal about institutions’ appetite for Bitcoin alternatives. Above all, In a context characterized by the monetary policy of the Federal Reserve and US regulatory dynamics.
