XRP ETF Inflows Hit Record Despite Slowing Investor Demand
Spot exchange-traded funds that follow Ripple’s cross-border coin had a good start to the week, with total net inflows hitting a new record high. A familiar and worrying issue, however, surfaced again in the days that followed. At the same time, the HYPE ETFs have broken their winning streak and are now considerably down for two weeks in a row. Here are the numbers for Monday and Tuesday: $2.49 million and $5.66 million, respectively, for the spot XRP ETFs. That is the encouraging change. But the thing that stood out was what happened over the next three workdays. Not only has this happened again, but it has gotten much worse in the past few weeks.
Every day over those three days, the same data aggregator recorded $0.00, hence there were no reportable net flows. Similar patterns emerged last week; four out of five days showed negative performance, while the fifth day came in at $0. Looking at the numbers, we can see that 10 of the last 15 trading days have had no net flows at all. Therefore, a closer examination of the figures shows that investors’ interest has reduced recently, even though the XRP ETFs ended two weeks in a positive light. The funds had a noteworthy nine-week run before the previous two weeks, when they earned more than $150 million.
But when taken as a whole, the numbers show that the entire net inflow has reached a new record high of about $1.5 billion. At the same time, the underlying asset saw a spike at the start of the week, going from below $1.09 to a multi-day high of $1.16, which could have been caused by the increasing net flows from ETFs. But that was where it came to a halt, and as of this writing, it has dropped back down to below $1.10. When the spot HYPE ETFs broke their own record of $110 million in a single week, they quickly became a favourite among investors, right up there with the XRP funds.
Nevertheless, net outflows have been the norm for those funds over the last two weeks, and investors have pulled their support. A withdrawal of more than $8.6 million occurred in the five trading days before to this, following a decrease of $7.26 million in net outflows. So, overall net inflows have dropped from $308.60 million at their high to $292.73 million as of Friday’s close.
