The exchange-traded fund (ETF) based on the Wall Street-managed virtual currency XRP ended in positive territory for 11 consecutive days, recording cumulative inflows of $756 million since its inception.
sustained action This reflects the growing interest of institutions in the virtual currency issued by Ripple.even though the market price maintains a downward trend.
Yesterday, December 1st, four US-registered ETFs added $89 million in new inflows, extending the streak of inflows they have maintained since mid-November. The graph below shows the XRP ETF’s capital flows on a daily basis.
The flow of funds is mainly concentrated in ETFs managed by investment company Canary Capital. Manages approximately $349 million in assets and leads litigation. The remaining capital will be distributed among products managed by Bitwise, Grayscale and Franklin Templeton, all competing to position themselves in a still-emerging niche within the regulated digital asset market.
The strong rise in ETFs has not been carried over to the XRP price in the spot market. In the past 7 days The cryptocurrency fell 9%, falling from $2.28 to $2.02.despite buying pressure on stock market products.
This disconnect between institutional investor interest and XRP performance is not an isolated phenomenon, but rather a response to structural market dynamics. XRP ETF trading volume is modest at approximately $41 million per day. This is in contrast to the Bitcoin ETF, which accumulates daily trading volume of over 4.69 billion.
With only four ETFs competing in the US, XRP products do not generate enough liquidity to absorb sales. spot Or raise prices immediately. Market makers buy XRP on the spot market to back their ETF holdings, but this small volume reduces its impact on the circulating supply of approximately 60 billion tokens.
In parallel, Ripple continues to expand its regulated activities. The company reported that the Monetary Authority of Singapore (MAS) has approved an extension of its authorization operations under the Major Payment Institution (MPI) license, and Ripple USD (RLUSD), a stablecoin issued by Ripple, was last week approved for use within the Abu Dhabi Global Market (ADGM) in the United Arab Emirates, as reported by CriptoNoticias.
While sustained inflows into the XRP ETF reflect growing demand, the impact on XRP’s price will depend on additional factors such as market liquidity and stock redemption amounts. For now, the disconnect between Wall Street and the XRP spot market remains.
(Tag translation) Altcoin
