XRP has emerged as a frontrunner among cryptocurrencies, garnering increased attention from institutional investors. This growth is particularly notable as ETFs related to XRP are attracting substantial capital, even while other crypto ETFs, like those tied to Bitcoin and Ethereum, face outflows.
Institutional Attention on XRP Surpasses Ethereum
The latest updates indicate that Grayscale’s Head of Research, Rayhaneh Sharif-Askary, reported during a recent conference that XRP is among the top cryptocurrencies discussed, trailing only Bitcoin. This statistic highlights XRP’s increasing prominence in the eyes of institutional players, outshining competitors like Ethereum.
Advisors are frequently posed questions by clients regarding XRP, signaling a burgeoning interest that could benefit the cryptocurrency’s market position. As a prominent issuer, Grayscale has actively launched an XRP ETF that has witnessed significant inflows since its initiation last November.
Major financial institutions such as Goldman Sachs and Jane Street have acknowledged substantial holdings in XRP through the ETFs, reflecting strong institutional endorsement. Goldman Sachs highlighted in its Q4 report a portfolio inclusive of shares from Bitwise, Franklin Templeton, Grayscale, and others related to XRP.
According to SoSoValue analytics, current net assets for XRP-focused ETFs total over $1 billion, accounting for roughly 1.17% of XRP’s market capitalization. Remarkably, these funds continue to attract inflows despite a broader downturn in the cryptocurrency market. Just this month, they recorded positive inflows totaling $46.69 million, while Bitcoin and Ethereum ETFs are projected to report further outflows.
Experts, including X Finance Bull, have noted this strong institutional demand for XRP, particularly in anticipation of forthcoming regulatory clarity. Analysts forecast that XRP will stand to gain significantly once the CLARITY Act reaches a conclusion. Ripple CEO Brad Garlinghouse has expressed optimism that legislative progress is nearing completion.
XRP Leads the Pack in Year-to-Date Inflows
According to a recent CoinShares report, XRP has outperformed Bitcoin, Ethereum, and other digital assets in terms of year-to-date (YTD) inflows. The XRP funds have recorded an impressive $148 million in inflows, while Bitcoin and Ethereum funds report negative trends with outflows exceeding $1 billion and $458 million, respectively.
Furthermore, only Solana has remotely approached XRP’s success, attracting YTD inflows of $99 million. Interestingly, XRP funds saw additional inflows last week amid the declines in Bitcoin and Ethereum. In total, XRP funds enjoyed net inflows of $33.4 million, while Bitcoin and Ethereum ETFs documented outflows of $133 million and $85 million, respectively.
As of now, XRP’s market price hovers around $1.47, enjoying a slight uptick over the past 24 hours, based on CoinMarketCap data.
