The XRP ETFs continue to see significant demand despite the current bear market conditions, with XRP on the decline. These funds are also outperforming the Bitcoin and Ethereum ETFs, which are seeing outflows as BTC and ETH trend downwards.
XRP ETFs Record Steady Inflows Even As Price Declines
SoSoValue data shows that the XRP ETFs have yet to record any outflows this month, boasting a net inflow of $116.74 million. These funds now have a total net inflow of $1.41 billion since they launched last year. Meanwhile, they hold total net assets of $1.13 billion, which represents 1.36% of XRP’s market cap.
These inflows into the XRP ETFs come despite XRP’s downtrend alongside the broader crypto market. The altcoin notably dropped to a new low of around $1.31 last week, but funds have yet to see outflows, signaling strong institutional demand. These ETFs are also notably outperforming the Bitcoin and Ethereum ETFs.
Further data from SoSoValue shows that Bitcoin ETFs have seen net outflows of $1 billion this month and are currently on a six-day streak of consecutive outflows. At the same time, the Ethereum ETFs have seen net outflows of almost $300 million and are currently on a 10-day streak of consecutive outflows.
Meanwhile, continued inflows into XRP ETFs coincide with XRP’s crowd sentiment turning negative again. The ratio of positive to negative commentary is dropping to just 1.1 bullish comments per 1 bearish comment, according to Santiment. The on-chain analytics platform noted that historically, this kind of fear and skepticism has often acted as a contrarian signal for XRP’s price. As such, this could be the perfect buy-the-dip opportunity in preparation for a potential bullish reversal.
What Institutional Investors Are Focused On
In an X post, crypto pundit X Finance Bull said that institutions buying XRP through ETF products are not reacting to the weekly price action but are positioning ahead of catalysts. These catalysts include the CLARITY Act, Kevin Warsh as the new Fed Chair, the DTCC tokenization going live in July, Ripple Prime’s $200 million debt facility, and the JPMorgan settlement on the XRP Ledger.
X Finance Bull remarked that institutional capital is making a statement about which assets they believe in through the downturn, as Bitcoin and Ethereum ETFs see outflows while XRP ETFs see inflows. He added that smart money accumulates when the price goes down. Notably, XRP is expected to be one of the biggest beneficiaries of the CLARITY Act, especially as Ripple continues to expand its operations. Another bullish catalyst for XRP is that the XRP Ledger continues to see increased tokenization activity.
At the time of writing, the XRP price is trading at around $1.33, down in the last 24 hours, according to data from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com
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