In an unexpected turn of events, investment inflows into XRP-focused products have abruptly stalled, showing a zero in the most recent weekly data made public by CoinShares. This abrupt halt follows a spectacular run in which $2.7 million was invested in these XRP-focused products over the course of four weeks beginning at the beginning of August.
The total inflow since the launch of XRP-focused exchange-traded products (ETPs) has exceeded an astounding $13 million, solidifying its position as one of the most popular options among crypto-oriented financial products. Among conventional investors, only Bitcoin (BTC), Short Bitcoin, and Solana (SOL) have outperformed XRP in popularity.
However, XRP is not the only cryptocurrency that is being pulled down by the decreasing inflows. James Butterfill of CoinShares has observed a cooling trend across the board for the market for digital asset investment products, with only minimal outflows of $11.2 million.
Sentiment issues
The year-to-date figures for digital asset investment products remain strong despite the brief decline in inflows, revealing a net inflow position of $165 million. Investor confidence has fluctuated significantly this year, partly as a result of regulatory changes in the digital asset market. This volatility was best exemplified last week when the revelation that all other spot ETF applications will be delayed led to disappointment after the U.S. spot ETF approval announcement had raised expectations.
Interestingly, trade volumes reached astounding heights, totalling $2.8 billion for the week, representing a startling 90% rise over the year-to-date average, while inflows remained subdued.
