- After experiencing four consecutive weeks of inflows amounting to $742 million, digital asset funds faced a reversal in the trend, with weekly outflows reaching $6.5 million.
- On the other hand, Ether (ETH) and XRP investment products experienced a different trend, as both saw a total inflow of $9.2 million over the past week.
Crypto investors seem to have become less interested in Bitcoin-related investment products, as they experienced their first week of outflows since Blackrock’s spot Bitcoin ETF filing in June. This news triggered a wave of competitors renewing their ETF applications, creating investor interest in BTC-focused investment funds.
As a result, funds saw a rapid influx of money, marking the fastest pace of investment since October 2021. However, the subsequent weeks saw a downturn in inflows, with investors seemingly lacking new, positive developments to continue driving their enthusiasm for Bitcoin.
According to James Butterfill, CoinShares Head of Research, Bitcoin investment products witnessed a total outflow of $13 million on July 21, ending five consecutive weeks of inflows. Additionally, short Bitcoin products also faced outflows of $5.5 million during the same week.
After experiencing four consecutive weeks of inflows amounting to $742 million, digital asset funds faced a reversal in the trend, with weekly outflows reaching $6.5 million. This shift occurred as Bitcoin investors appeared to have exhausted the positive news driving their investments following significant events in the past few weeks.
Bitcoin Fear and Greed Index is 50 ~ Neutral
Current price: $29,178 pic.twitter.com/T1DMFpsX9p— Bitcoin Fear and Greed Index (@BitcoinFear) July 25, 2023
On the other hand, Ether (ETH) and XRP investment products experienced a different trend, as both saw a total inflow of $9.2 million over the past week.
According to Butterfill, Ether investment products were the top performers, attracting $6.6 million in inflows, while XRP funds received an inflow of $2.6 million. In addition, altcoins like Solana (SOL) and Polygon (MATIC) also witnessed investment interest, with inflows of $1.1 million and $0.7 million, respectively.
XRP’s Unexpected Triumph: Reviving the Crypto Market
XRP’s recent legal win against the U.S. Securities and Exchange Commission (SEC) significantly impacted the cryptocurrency market. Initially, the victory propelled BTC’s price to reach a new yearly high, but it quickly retraced below $30,000.
After a U.S. judge’s ruling, the token’s price surged by an impressive 78%, sustaining a significant gain of approximately 47%. This substantial growth has resulted in XRP’s market capitalization skyrocketing from $25 billion to $36 billion, and its share in the crypto market has increased from 2% to 3.5% since the ruling.
Ripple’s groundbreaking legal victory has profoundly impacted the wider altcoin market, as much of the regulatory scrutiny in the industry revolves around determining whether certain tokens should be treated as more tightly-regulated securities. This was evident through favorable fund flows observed in the market during the past week.
As a result of this development, the altcoin market cap has risen from $636.38 billion to $665.2 billion, as reported by CoinGecko. Moreover, a Cryptoquant index tracking the prices of coins potentially targeted as securities by the SEC has surged by 11%.
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