In a surprising turn of events, XRP, a leading digital currency, has seen a sevenfold increase in investment inflows over the past week, establishing it as the top cryptocurrency for investment products. According to CoinShares’ latest report, XRP-related products attracted an impressive $700,000 last week, indicating a significant rise in investment into XRP Exchange Traded Products (ETPs).
The surge in XRP inflows is notably connected to increased activity on the Bitstamp exchange. This heightened activity typically suggests a potential sell-off; however, in this case, it could indicate an entirely different trend. The increased inflows on Bitstamp might be tied to the growing use of Payments, previously known as On-Demand Liquidity.
Ripple, a major player in the cryptocurrency sector and partial owner of Bitstamp, actively uses XRP within its payment services. The partnership between Ripple and Bitstamp could be driving the rise in XRP-focused investments.
While XRP has been leading the pack, other cryptocurrencies such as (SOL) and (LTC) have also seen significant inflows into their respective ETPs over the past week.
However, a broader look at the cryptocurrency investment product market tells a contrasting story. The market has experienced its sixth consecutive week of outflows, with a total of $9.1 million exiting the market. Since the start of this year, the market has witnessed an outflow of $125.5 million. (BTC) ETPs were among those impacted by this trend, seeing outflows of $5.9 million last week.
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