$XRP investment product inflows stand out as crypto outflows continue for seventh week [Advance Cash ]

$Xrp Investment Product Inflows Stand Out As Crypto Outflows Continue For Seventh Week

Digital asset investment products saw outflows totaling $62 million over the past week, marking the seventh consecutive week of outflows, totaling $329 million, or roughly 1% of total assets under management. Notably, $XRP investment products stood out as inflows increased.

The sequence of outflows now matches a similar trend seen in early 2022, according to CoinShares' Digital Asset Fund Flows report, which notes that the change in total assets under management lines up with the 1% outflow rate, which which implies that a fall in prices is not the cause of this trend, but rather by investors taking advantage of their profits.

This claim is further supported by the fact that prices have increased by 56% for all investment products since the beginning of the year. The releases come amid subdued business activity, with volumes 60% below this year's average, according to the report.

Major cryptocurrency Bitcoin saw minor outflows over the past week totaling $2.7 million, while products shorting BTC saw outflows of $6.3 million. Over the past six weeks, total outflows for these short Bitcoin products have represented a staggering 44% of assets under management, compared to 0.9% for BTC-focused products.

This would suggest that investors are taking profits and closing their short positions, rather than reflecting a bigger change in sentiment towards Bitcoin. When it comes to altcoins, the smart contract platform TRON, which recently set a new record with almost 11 million transactions in one day, stood out with volumes 60% below this year's average.

Meanwhile, XRP, the native token of the XRP Ledger, saw inflows of $600,000 over the past week, bringing its year-to-date numbers to $4 million. Inflows are rising at a time when the cryptocurrency has added billions to its market capitalization across a number of factors.

These factors include XRP seeing its second and third largest spikes in address activity of all time, in the span of just two days. The event could potentially signify substantial changes ahead in the network's market position.

The number of addresses interacting with the network recently reached an all-time high of 490,000, according to on-chain analytics firm Santiment. The 490,000 figure is not far behind the biggest spike ever recorded on March 18, which triggered a remarkable 45% increase in the price of XRP over the following ten days.

The reasons for the spikes in address activity on the XRP Ledger are unclear, although the cryptocurrency saw its price rise earlier this month following reports that the SEC's case against Ripple Labs, a major player in the cryptocurrency ecosystem, is now bowing. favor of fintech.

Recently, John Deaton, a well-known US attorney and founder of CryptoLaw, revealed that he believed the SEC had less than a 3% chance of an “outright total victory.”

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