XRP ETF attracts over $19 million, with AUM approaching $1.1 billion. Why does the price still hover around $1.40?

XRP2,64%
BTC1,01%
ETH2,02%

March 6 News: Despite recent sustained pressure on XRP prices, investors continue to increase their holdings in XRP ETFs. According to SoSoValue data, approximately $19 million flowed into XRP ETFs over the past week, with total assets under management approaching $1.1 billion. Notably, XRP’s trading price remains over 60% below its all-time high, at around $1.40, having declined about 11% over the past 30 days, indicating that overall market sentiment remains cautious.

Analysts point out that, compared to Bitcoin ETFs, the capital inflow into XRP ETFs is still relatively small. Since the launch of Bitcoin ETFs in January 2024, they have set record for the most successful debut, with over $1.3 billion in inflows just in the past week, and total assets reaching approximately $107 billion. Matt Hougan, Chief Investment Officer of Bitwise Asset Management, warns that while XRP ETFs are performing well, their market influence cannot compare to that of Bitcoin ETFs.

On the macroeconomic front, the crypto market is under multiple pressures, including the $19 billion liquidation event on October 10, global economic headwinds, and geopolitical tensions, all of which have suppressed short-term upward momentum for XRP and other major digital assets. However, XRP’s underlying technology still holds potential, especially given its close ties to Ripple. Ripple is accelerating the development of central bank digital currency (CBDC) issuance and payment processing technologies, and holds substantial XRP reserves, supporting its long-term value.

Ric Edelman, founder of the Digital Assets Council of Financial Professionals, states that although investors have recently focused on Bitcoin and Ethereum, XRP may still have a rebound opportunity. He notes that XRP’s technology is viable, and if market conditions improve, investor interest could gradually recover.

Overall, the inflow of funds into XRP ETFs indicates that investors remain interested in the asset, but short-term prices are still affected by market volatility and macro factors, remaining at low levels. Future price performance will depend on overall market sentiment and the progress of Ripple’s technology deployment. Investors should remain patient and watch for potential rebound opportunities.

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