The XRP cryptocurrency exchange-traded fund (ETF) has recorded its largest total capital outflow since it debuted on Wall Street. This comes after it reported a negative balance of $92.9 million during the day yesterday, January 29th.
The day was marked by significant divergence between issuers of these financial instruments. This departure represents only one of the five ETFs currently listed on the stock market.since November. This is the Grayscale XRP Trust ETF (GXRP), which recorded net outflows of $98 million in one day.
This ETF’s movement was partially moderated by the performance of its other competitors. they kept the balance positive. Bitwise XRP ETF (XRP) raised $2.4 million, followed by Canary XRP ETF (XRPC) with $2.1 million in inflows. The Franklin XRP ETF (XRPZ) had a balance of $972,000.
The graph below shows capital flows into and out of the XRP ETF on a daily basis.
At the end of the session, The total net assets of these funds amounted to $1.21 billion.equivalent to 1.10% of the market capitalization of the XRP cryptocurrency.
This event must be analyzed from a long-term perspective. bad day Accumulations from the past 77 days will not be cleared Continuous. What happened was that the so-called weak investors exited, while the smart money and long-term investors remained in their positions.
This view is supported by the following facts: Net capital inflows into the sector increase by 48 days Since launch, there have only been three days with negative numbers.
Market trends and the impact of Bitcoin
The decline in ETF flows coincided with a correction in crypto prices. XRP has fallen 2% in the past 24 hours As you can see in the graph, last week’s total is 8%.
The price of XRP has fallen, but not as a direct result of ETF flows. This is because although these products have steadily accumulated capital, Total amount under management remains small compared to the global asset market size.
These instruments are still new to Wall Street and relatively small. Therefore, you still don’t have enough weight. To create sustained bullish pressure Or a price collapse.
The bearish move is mainly influenced by the performance of Bitcoin (BTC), whose price has declined in recent days. As reported by CriptoNoticias, the high correlation and market power exerted by the digital currency created by Satoshi Nakamoto has made its fluctuations they tend to drag the rest down of cryptocurrencies.
When the price of Bitcoin falls, the liquidity of the riskiest assets tends to shrink. It directly affects the evaluation of XRP. this, Regardless of the specific organizational flow.
(Tag translation) Altcoin
