XRP Funds Attract Inflows as Other Crypto ETFs Experience Withdrawals
In a notable development for the cryptocurrency market, U.S. spot XRP exchange-traded funds (ETFs) attracted approximately $8 million in net inflows on Thursday. This surge marks a unique occurrence, as XRP funds were the only subset within the crypto ETF landscape to show positive movement amidst widespread withdrawals in the broader market, according to data from SoSoValue.
Key Inflows in XRP Funds
All invested capital in XRP during this period was directed toward Franklin Templeton’s XRPZ fund, which saw an addition of roughly 6 million XRP tokens. However, the remaining four XRP ETFs did not record any inflows.
Outflows Across Major Cryptocurrencies
Conversely, the crypto landscape experienced significant outflows from major assets. Bitcoin ETFs reported a staggering loss of nearly $244 million following an extensive outflow of $485 million just a day prior, leading to total withdrawals of around $729 million over a two-day span. Other digital assets also faced withdrawals:
- Ether ETFs: $73 million
- Solana (SOL) funds: $3 million
- Zcash (ZEC) ETF: $19 million—marking its fifth outflow in a month
The ZEC ETF has not seen any inflows in October, accumulating a total of about $86 million in outflows, which has decreased approximately one-third of its net inflows since its inception.
Market Context and Reactions
The recent withdrawal trends coincided with a market upheaval, wherein $1.19 billion in leveraged crypto positions were liquidated, causing Bitcoin to dip to around $80,400. However, following comments from President Trump regarding U.S. non-involvement in striking Iran prior to the midterm elections, Bitcoin has since rebounded to approximately $82,000.
Comparative Performance of XRP Funds
Since their launch, XRP funds have accumulated about $1.81 billion in investments, outpacing the $1.59 billion seen in SOL ETFs, underscoring the strong appeal and investor interest in XRP amidst fluctuating market conditions.
Conclusion
The contrasting performance of XRP ETFs compared to other major cryptocurrencies reflects shifting investor sentiment and highlights the volatility inherent within the crypto market. As the situation develops, market participants will be watching closely to see how these trends unfold.
