XRP has outpaced Ethereum in terms of institutional investor discussions. This trend continues as XRP ETFs attract significant inflows despite outflows from Bitcoin and Ethereum ETFs.
XRP Surpasses Ethereum in Institutional Interest
During the XRP Community Day, Grayscale’s Head of Research, Rayhaneh Sharif-Askary, highlighted that XRP is the second most talked-about asset among institutional investors, following Bitcoin. This positions XRP ahead of other cryptocurrencies like Ethereum in terms of generating interest among institutional investors.
Sharif-Askary mentioned that financial advisors are frequently asked about XRP by their clients, indicating a positive outlook for the altcoin. Grayscale is one of the issuers of XRP ETFs, which have seen substantial inflows since their launch in November last year.
Major financial institutions such as Goldman Sachs and Jane Street have disclosed significant exposure to XRP through these ETFs. Goldman Sachs’ Q4 filing revealed holdings in various XRP funds, indicating growing interest from institutional investors.
Data from SoSoValue shows that XRP ETFs currently hold over $1 billion in assets, representing 1.17% of the altcoin’s market cap. Despite the ongoing crypto market downturn, these funds have continued to attract significant inflows, with net inflows of $46.69 million this month. In contrast, Bitcoin and Ethereum ETFs are experiencing outflows.
Crypto analyst X Finance Bull highlighted the increasing demand for XRP among institutional investors, suggesting that they are positioning themselves ahead of regulatory clarity. The analyst anticipates that XRP will benefit greatly once the CLARITY Act is enacted, with Ripple CEO Brad Garlinghouse predicting progress by April.
XRP Leads in Year-to-Date Flows
According to a CoinShares research report, XRP funds have attracted the most inflows among cryptocurrencies like Bitcoin and Ethereum in the year-to-date period. XRP funds have seen $148 million in inflows, while BTC and ETH funds have experienced outflows.
Additionally, Solana funds trail behind XRP with $99 million in year-to-date inflows. Recent data indicates that XRP funds received net inflows of $33.4 million, while BTC and ETH ETFs saw outflows.
As of now, XRP is trading at around $1.47, showing an upward trend in the last 24 hours, as per data from CoinMarketCap.
Featured image from Freepik, chart from Tradingview.com
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