- SEC’s ETF approval ensured that interest shifted to BTC at XRP’s expense.
- XRP’s volume had its period of increase but it wasn’t able to match BTC.
Last week, Bitcoin [BTC] made headlines after the U.S. SEC approved the first leveraged Exchange-Traded Funds (ETF). The development captured the attention of investors, which led to the king coin’s dominance in overall digital asset inflow.
Realistic or not, here’s XRP’s market cap in BTC’s terms
BTC gets the focus; XRP stumbles
According to CoinShares’ fund flow report, investment products reached their highest since July 2022 over the previous week. This amounted to $199 million, with Bitcoin accounting for $187 million of it.
For context, the weekly publication covers the investment inflows and outflows of mutual funds and Exchange Traded Products (ETPs).
So, the surge in Bitcoin’s share implies that investors’ confidence was high.
CoinShares stated,
“We believe this renewed positive sentiment is due to recent announcements from high profile ETP issuers that have filed for physically backed ETFs with the US Securities & Exchange Commission.”
Unlike BTC, Ripple [XRP] was one asset that was starved of liquid input. Based on the report, XRP’s inflow accounted for $240,000, much less than Ethereum [ETH] and Solana [SOL].
Source: CoinShares
At some point, XRP had a stronghold on inflows. But the recent drop in enthusiasm, as per its case with the SEC, has affected the token’s momentum.
Although other altcoins did not fare too impressively, only Tron [TRX] and Cardano [ADA] fell short of XRP’s performance. Concerning the matter, CoinShares mentioned,
“This turn in sentiment didn’t trickle down to altcoins with only very minor inflows into XRP and Solana totaling US$0.24m and US$0.17m respectively.”
Who wins the volume and price race?
There was, however, a noteworthy occurrence with BTC and XRP during the same week. On several occasions, the volume of BTC significantly increased. The same also happened with XRP.
However, the difference between both metrics was not marginal. And at press time, XRP’s volume was 815 million while BTC was 13.62 billion.
Source: Santiment
Such a high trading volume for BTC meant there was strong buying pressure. This demand pushed the price to exchange hands above $30,000.
For XRP, the demand was not entirely significant to push the value above board. Consequently, it only managed a slight increase in the last seven days, which has turned into a 1.44% fall.
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To end, the introduction of Bitcoin-leveraged ETFs has surely had an impact on the inflow of funds into XRP.
Subsequently, some investors who might have previously allocated funds to XRP may now be directing their investments toward Bitcoin ETFs instead. This might remain the case unless some notable development changes with XRP.
