XRP funds have shown resilience amidst the turbulent crypto market, recording $70 million in inflows despite an overall $446 million in outflows from crypto ETPs. According to CoinShares, this marks a notable divergence in investor behavior.
For the second consecutive week, the broader crypto fund market faced a bearish trend. This downturn was largely driven by investor exit from Bitcoin and Ethereum-based products, leading to total outflows reaching $3.2 billion since the market shock on October 10. CoinShares highlighted that this shift came after three weeks of positive inflows, with a stark reversal to $952 million in outflows last week.
XRP Funds: A Beacon of Hope
While XRP funds stood out with inflows, the broader sentiment suggests caution among investors. CoinShares noted, “Investor sentiment has yet to fully recover.” Despite these challenges, year-to-date flows align with last year’s figures, with total inflows reaching $46.3 billion compared to $48.7 billion in 2024.
October’s market upheaval, marked by a significant liquidation event, was partly triggered by former President Donald Trump’s tariff threats on Chinese imports. The scale of these liquidations hinted at the involvement of major institutional players.
Market Dynamics and Regional Insights
Bitcoin ETPs experienced outflows of nearly $443 million, while Ethereum products saw a $59 million dip. Yet, XRP and Solana funds managed to attract $70 million and $7.5 million, respectively. Notably, Franklin Templeton’s XRP ETF, launched recently, contributed $28.6 million to these inflows.
Globally, the U.S. market led with the highest outflows of $460 million, followed by Switzerland with $14 million. However, Germany emerged as a unique case, drawing inflows of $35.7 million. This suggests investors are leveraging recent price weaknesses to enhance their positions.
CoinShares further commented, “Germany’s inflows of $248 million indicate a strategic accumulation by investors despite prevailing market conditions.”
As of November 2023, The Block reported on these developments, maintaining its commitment to delivering timely and objective crypto news. Foresight Ventures, a majority investor in The Block, continues to support independent journalism in the crypto sphere.
