cryptocurrency

XRP ETFs Beat BTC, ETH, and SOL Funds

Despite the positive entry, the price of XRP fell below $1.55 again before further volatility.

In times of uncertainty, rapidly changing global conditions, and volatility in the US government, investors have shown markedly different behavior in crypto ETFs.

While those exposed to the world’s largest cryptocurrency have been withdrawing funds from them, XRP alternatives actually outperformed their peers with strong daily net inflows yesterday.

XRP Outmatches Competition

Data from SoSoValue shows that the Bitcoin ETFs space has been in the red for the past few weeks. February 2 was an exception, with more than $560 million coming in. However, the last business week saw more than $1.4 billion in total outflows. February 3 was another painful trading day, when $272 million was withdrawn.

Given the cryptocurrency’s recent price decline, ETF investor holdings dipped below the cost-average basis of accumulated BTC for the first time in 18 months.

Some crypto ETFs that track major altcoins, however, were green. The Ethereum ETF spot attracted $14.06 million; SOL funds saw a small net inflow of $1.24 million; and XRP products outperformed others with a net profit of $19.46 million. Overall, Ripple ETFs saw more daily inflows than all other cryptocurrencies combined yesterday.

In fact, this was the XRP ETF’s best day since January 5, when inflows reached $46.10 million. The combined net inflow of Ripple funds is up to $1.20 billion, which is still slightly below the average of $1.26 recorded before the January 29 crash.

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Spot XRP ETF income. Source: SoSoValue

XRP volatility

Yesterday was another eventful and volatile trading day in the cryptocurrency markets. Perhaps due to rising tensions in the Middle East and the partial reopening of the US government, or ETF inflows and outflows, BTC fell to a yearly low of $73,000 before rebounding to over $76,000 as of press time.

Altcoins have gone through similar fluctuations. Interestingly, XRP dropped to $1.53, then rose to $1.63 before settling at $1.60 as of now. This means that the token is down about 17% weekly and 25% monthly. It was brutally rejected from the $2.40 high reached on January 6, and has failed to make any sort of sustained recovery since then.

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