The digital currency market has witnessed fear, uncertainty and doubt (FUD). This was followed the Bybit hack, which caused volatility in the cryptocurrency space. This has affected crypto investment in the last few days, with XRP outshining other assets.
In an update by CoinShares, digital asset investment products recorded a net outflow of $508 million. This represents the money that left the crypto sector from institutional investors. Surprisingly, Bitcoin was the major contributor to the net outflow.
On the contrary, XRP led with $38.3 million in inflows, suggesting investors are shifting their focus to altcoins with a specific interest in the coin.
Analysts consider XRP’s strong inflows to indicate growing confidence in its future, possibly due to its almost-over legal battle with the United States Securities and Exchange Commission (SEC).
Several asset managers have recently filed for XRP exchange-traded funds (ETF). In a significant development, Brazil has approved the first XRP ETF, which also signals positive sentiment for the coin’s ecosystem.
Besides XRP, other altcoins that performed well were Solana (SOL) with a $8.9 million inflow, Ethereum (ETH) with $3.7 million and Sui (SUI) with $11.47 million.
This move to altcoins signals a shift in investment patterns among investors.
Bitcoin (BTC) contributed the highest outflow as the leading digital asset, which recorded $571 million, and shows that investors pulled back significantly. The funds pulled out of Bitcoin appear to have been invested into the altcoins.
Regarding regional trends, the U.S. also had the highest outflow, with a massive $60 million. This development aligns with broader economic uncertainties in the financial sector.
However, crypto investment products from Germany and Switzerland had inflows of $30.5 million and $15.8 million, respectively. Analysts say this inflow pattern shows that European investors have more optimism toward crypto than American investors.
Meanwhile, in terms of market performance, XRP is currently trading at $2.47, down by 3.38%, while BTC is down by 0.24% at $95,663.24.
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