According to CoinShares’ most recent weekly report on digital asset funds, the previous week witnessed withdrawals totaling over $400,000 from investment products with an emphasis on XRP. For some weeks, XRP had been a top choice for conventional investors looking to invest in cryptocurrencies using these tools.
This strategy has been used to invest almost $3 million in XRP since the start of 2023. The findings from last week, however, signalled the end of that streak and revealed a change in how this class of investors felt about XRP.
Possible reasons
This reversal was caused by two key factors. First, significant cryptocurrencies like Bitcoin (BTC) crossed the crucial psychological $30,000 milestone, sparking a wave of profit-taking and selling emotions as well as a wide market slump.
The absence of a decision in the SEC’s action against Ripple, which will establish whether or not XRP is a security, is the second, more speculative aspect. In anticipation of the case’s conclusion, which was anticipated to be disclosed in the spring, investors had been eager to have exposure to XRP. The verdict is still waiting, though, far into the season. This has definitely led some investors to sell their XRP investments, along with anxiety over the market’s future course.
A six-week streak of inflows into digital asset investment products came to an end last week with withdrawals reaching $30 million. This can be seen as evidence of a cautious attitude among investors in the market for digital assets.
