In a surprising turn of events, XRP, a leading digital currency, saw a seven-fold increase in investment flows over the past week, cementing it as the leading cryptocurrency for investment products. According to the latest report from CoinShares, XRP-related products attracted an impressive $700,000 last week, indicating a significant increase in investment in XRP exchange-traded products (ETPs).
The increase in XRP inflows is notably related to increased activity on the Bitstamp exchange. This increased activity usually suggests a possible liquidation; however, in this case, it could indicate a completely different trend. The increase in inflows into Bitstamp could be related to the growing use of payments, formerly known as on-demand liquidity.
Ripple, a major player in the cryptocurrency sector and part owner of Bitstamp, actively uses XRP within its payment services. The partnership between Ripple and Bitstamp could be driving the rise of XRP-focused investments.
While XRP has been leading the way, other cryptocurrencies like (SOL) and (LTC) have also seen significant inflows into their respective ETPs over the past week.
However, a broader look at the market for cryptocurrency investment products reveals a contrasting story. The market has experienced its sixth consecutive week of capital outflows, with a total of $9.1 million leaving the market. Since the beginning of this year, the market has witnessed an outflow of $125.5 million. (BTC) ETPs are among those affected by this trend, with outflows of $5.9 million last week.
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