XRP exchange-traded funds have surpassed $1 billion in assets due to the long-standing recognition of the token among mainstream market participants, combined with its strong price performance over the past few years, according to a crypto executive.
It comes as spot Ether (ETH) ETFs continue to post outflows, while spot Bitcoin (BTC) ETFs have recorded choppy performance over the past week.
“Many investors are taking a position in XRP because of the familiarity. It has a long track record,” Sui Chung, the CEO of crypto price index provider CF Benchmarks, told CNBC on Wednesday.
XRP’s 3-year return not unnoticed by investors
Chung said that XRP’s multi-year performance has also played a role in attracting capital.
“Obviously, price performance has been pretty impressive over the past three or four years, so there are a number of reasons that it’s attracting investor dollars,” he said.
CF Benchmarks CEO Sui Chung spoke to CNBC on Wednesday. Source: CNBCXRP (XRP) is trading at $1.81 at the time of publication, and while it is up approximately 417% since 2022, it is down 22.81% since Jan. 1, according to CoinMarketCap.
Spot XRP ETFs have seen $423.27 million in inflows since Nov. 14, according to CoinGlass, and recently surpassed $1 billion in assets under management, data from SoSoValue shows.
The five major XRP ETF issuers, Canary Capital, 21Shares, Grayscale Investments, Bitwise Asset Management and Franklin Templeton, currently have $1.14 billion in AUM.
Solana narrative is starting to be better understood
Meanwhile, Chung said that investors are beginning to better understand the investment case for Solana (SOL), helping drive recent inflows into spot Solana ETFs.
Over the past nine days, spot Solana ETFs have posted $102.8 million in net inflows, according to CoinGlass.
“The understanding that traditional investors have of Solana and the types of applications that run on Solana, the types of fees that Solana has and the daily active users makes for a pretty compelling reading,” he said.
Related: XRP’s ‘bearish’ setup may crash price below $1: Analyst
The rising demand for Solana and XRP spot ETFs coincides with the increased volatility in trading of the two largest cryptocurrencies by market capitalization, Bitcoin and Ethereum, in their US-based ETF products.
Spot Ether ETFs have recorded five consecutive days of outflows totaling $533.1 million, according to Farside.
However, spot Bitcoin ETFs have recorded choppier performance over the same period. On Thursday, US spot Bitcoin ETFs logged $457.3 million in inflows, recouping part of the $634.8 million in outflows seen over the prior two sessions.
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Source: https://cointelegraph.com/news/xrp-etf-demand-rises-price-familiarity-crypto-executive?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
