While the overall crypto market is currently trading in a range, XRP seems to have found its footing among institutional investors. According to the new CoinShares report, the altcoin has been on a tear in the past week, moving against the broader outflows in digital asset investment products.
Institutional Investment in XRP Skyrockets 700%
Institutional investors have been getting more invested in the altcoin space, with many of them pouring money into XRP recently amid heightened activity on exchanges like Bitstamp. CoinShares’s latest report reveals that digital asset investment products saw outflows for the 6th consecutive week amid low trading volumes. Of the total $9 million in outflows, Bitcoin witnessed the most, with $5.9 million leaving Bitcoin investment products.
On the other hand, inflows into digital products of XRP went from $0.1 million over the prior week to $0.7 million in institutional inflows over the past week, representing a spike of 700% from the prior week and a continued turnaround from the net outflows witnessed in the past month.
The last time the token saw this type of inflows was after Ripple’s partial victory in court, where $0.5 million flowed into the digital asset’s investment products.
Several factors are driving institutional investors to the altcoin. For one, XRP has held up well and provided more returns than most cryptocurrencies this year. In addition, Ripple, the company behind the token, has made progress in expanding the utility of the XRP Ledger through partnerships with various financial institutions and payment providers.
Claims Of Centralization And The Ripple Party
The recent inflows into the token come amidst recent claims of XRP’s centralization and the upcoming Ripple party. According to Bitcoin advocate Max Keiser, XRP is centralized by Ripple. He made this claim while sharing a 32-year-old patent for a distributed computer system by Ripple. However, this wasn’t welcomed well by supporters, as Keiser received backlash from members of the community for his claim.
The spike in inflows into XRP products can also be linked to the upcoming Ripple Party. According to the payment technology company, the Ripple party to celebrate Ripple’s partial victory in court against the SEC will take place on September 29th.
The recent surge in institutional interest and investment in XRP and other altcoins like Litecoin and Solana could signal a major price rally on the horizon. However, according to one crypto analyst, investors might have to wait for another five years before the crypto’s next all-time high. The altcoin is currently trading at $0.5006 and is down by 0.9% in a 7-day timeframe.
Token price sitting at $0.5 | Source: XRPUSD on Tradingview.com
Featured image from Coingape, chart from Tradingview.com