The XRP exchange-traded fund has grown to more than $1 billion in assets due to the token’s long-standing recognition among mainstream market participants and strong price performance over the past few years, according to one crypto executive.
This comes as the Spot Bitcoin (BTC) ETF has seen volatile performance over the past week while the Spot Ether (ETH) ETF continues to see outflows.
“Many investors are taking positions in XRP because they are familiar with it. XRP has a long track record,” Sui Zhang, CEO of crypto price index provider CF Benchmarks, told CNBC on Wednesday.
3-year return of XRP that investors are paying attention to
Chung said XRP’s multi-year performance has also helped attract capital.
“Obviously, the price performance over the last three to four years has been very good and there are a number of reasons why it’s attracting investor money,” he said.
CF Benchmarks CEO Sui Chung told CNBC on Wednesday. sauce: CNBC
According to CoinMarketCap, XRP (XRP) is trading at $1.81 at the time of article publication, and has risen about 417% since 2022, while falling 22.81% since January 1st.
According to CoinGlass, the Spot XRP ETF has seen $423.27 million in inflows since Nov. 14 and recently surpassed $1 billion in assets under management, SoSoValue data shows.
The five major XRP ETF issuers, Canary Capital, 21Shares, Grayscale Investments, Bitwise Asset Management, and Franklin Templeton, currently have $1.14 billion in assets under management.
Solana’s story is beginning to be better understood
Meanwhile, Chun said investors are starting to better understand the investment case for Solana (SOL), which is driving recent inflows into the Spot Solana ETF.
Over the past nine days, the Spot Solana ETF has recorded net inflows of $102.8 million, according to Coinglass.
“What traditional investors understand about Solana and the types of applications that run on it, the types of fees Solana charges, and the daily active users makes for very compelling reading,” he said.
The increased demand for Solana and XRP spot ETFs coincides with increased volatility in trading of US-based ETF products for Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization.
According to Pharcyde, the Spot Ether ETF recorded total outflows of $533.1 million for five consecutive days.
However, the Spot Bitcoin ETF recorded a more volatile performance over the same period. On Thursday, the US Spot Bitcoin ETF recorded inflows of $457.3 million, reversing some of the $634.8 million outflows seen in the previous two sessions.
