The XRP cryptocurrency exchange-traded fund (ETF) reported a negative balance of $92.9 million during trading on January 29 yesterday, marking the largest capital outflow since its Wall Street debut.
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 move was partially mitigated by the performance of other competitors, which maintained a positive balance.
Bitwise XRP ETF (XRP) raises $2.4 million, followed by Canary XRP ETF (XRPC) with $2.1 million, Franklin
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. One bad day does not erase the previous 77 days of continuous accumulation. What happened was that the so-called weak investors exited, while the smart money and long-term investors remained in their positions. Supporting this view is 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, The total amount under management remains small compared to the global market size for this asset..
Because these instruments are new to Wall Street and relatively small, they don’t yet have the weight to cause sustained upward pressure or price crashes.
As reported by CriptoNoticias, the bearish move is mainly influenced by the performance of Bitcoin (BTC), which has seen its price drop in recent days. The digital currency created by Satoshi Nakamoto has high correlation and market power, so its fluctuations usually drag down other cryptocurrencies.
When the price of Bitcoin falls, the liquidity of the riskiest assets tends to shrink. Directly affects XRP valuation Regardless of the specific organizational flow.
