XRP 'Holds Strong' Despite Plunging Fund Inflows... US and German Buying Saved It

▲ XRP

Fund inflows into XRP-based investment products plummeted by 88% compared to the previous week, but buying pressure from US and German investors continued, maintaining a positive trend.

U.Today reported on May 5 (local time), citing CoinShares' weekly report, that global XRP-based ETPs saw a net inflow of $3 million for the week ending May 1. This is an 88% decrease compared to the $25 million from the previous week. However, despite the significant slowdown in fund inflows, XRP maintained net inflows, suggesting that institutional investor exits were limited.

U.Today further stated that while XRP recorded a low inflow amount on a monthly basis, it showed stronger resilience than Ethereum (ETH), which recorded a net outflow of $81.6 million. Even as the number of assets showing a positive trend decreased from 9 to 4 during the same period, XRP was categorized as one of the few assets with remaining institutional demand.

Behind XRP's sustained positive trend was regional demand. Germany recorded a net inflow of $43.8 million across all digital asset products, acting as a stabilizing force for European funds. It was analyzed that while risk-averse movements increased in other regions, German investors consistently bought during price dips.

The US also recorded a net inflow of $47.5 million for the overall market. However, the US market was pushed to the brink of turning negative with outflows for four consecutive trading days during the week, and a single day's inflow of $737 million into the overall market on Friday pushed Bitcoin (BTC) and XRP back into positive territory.

CoinShares analyst James Butterfill commented that the market has passed through a narrow bottleneck. The fact that XRP maintained a limited net inflow of $3 million despite $619 million flowing out of virtual asset investment products from Monday to Thursday is interpreted to mean that a core investor base exists that does not give up XRP exposure even in situations of reduced volatility.

U.Today assessed that XRP is experiencing a temporary liquidity drought. However, the fact that it maintained a positive trend even with an 88% decrease in inflows demonstrates that institutional buying from the US and Germany is acting as a continuous foundation, not a one-time surge.

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