While the crypto market bleeds, XRP alone sees 45 million dollars in inflows. Why do institutions keep buying?
While the crypto market bleeds, XRP alone sees 45 million dollars in inflows. Why do institutions keep buying?
XRP is proving unparalleled institutional demand by recording weekly inflows of $45 million into exchange-traded funds, even amid a broad downturn in the crypto asset market.
According to crypto-focused media outlet U.Today on February 8 (local time), a total of $45 million flowed into spot XRP exchange-traded funds over the past week. This stands in stark contrast to Bitcoin (BTC) and Ethereum (ETH) products, which saw outflows of $80 million and $149 million, respectively. Notably, on February 6 alone, $39.04 million flowed in, indicating that institutional investors are taking advantage of the recent price correction as a buying opportunity.
By product, the Bitwise XRP ETF led the market with daily inflows of $8.29 million. Products from Franklin Templeton and Canary also contributed, securing $3.94 million and $2.93 million, respectively. Total assets under management for XRP ETFs have now grown to $1.04 billion, equivalent to about 1.17% of XRP’s total market capitalization.
Amid the sharp price decline, Ripple CEO Brad Garlinghouse urged investors to remain level-headed. Citing Warren Buffett’s adage that one should be greedy when others are fearful, Garlinghouse described the recent downturn as a buying opportunity created by market fear. On February 6, XRP recorded the largest drop among the top 100 assets by market capitalization, falling nearly 70% from its peak, but it has since rebounded to around $1.42, supported by institutional inflows.
There has also been reflection that predictions claiming the introduction of crypto ETFs would reduce market volatility have missed the mark. Bloomberg senior ETF analyst Eric Balchunas acknowledged that his previous expectation—that price swings would narrow once ETFs were approved—was incorrect. After witnessing the recent market turbulence, Balchunas accepted flaws in the volatility-mitigation hypothesis and urged caution among investors.
The continued inflow of institutional-grade capital is serving as a key indicator supporting XRP’s long-term value appreciation potential. Cumulative net inflows have now surpassed $1.22 billion, solidifying XRP’s position as a new mainstream asset within the crypto market. As selective institutional buying persists despite macroeconomic uncertainty, industry attention is focused on whether XRP can lead the next market rebound.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses based on it. The content should be interpreted solely for informational purposes.*
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