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

▲ XRP

Although fund inflows into XRP-based investment products plummeted by 88% compared to the previous week, buying pressure from US and German investors helped maintain 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, indicating that institutional investor outflows were limited.

U.Today stated that while XRP recorded low inflows 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 positive flows decreased from nine to four during the same period, XRP was categorized as one of the few assets with remaining institutional demand.

Regional demand was behind XRP's sustained positive trend. 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 German investors consistently bought during downturns while risk aversion increased in other regions.

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

James Butterfill, an analyst at CoinShares, assessed that the market had passed through a narrow bottleneck. The fact that XRP maintained a limited net inflow of $3 million, even as $619 million flowed out of virtual asset investment products from Monday to Thursday, is interpreted to mean that a core investor base exists that is not abandoning XRP exposure even in a situation of reduced volatility.

U.Today evaluated that XRP is experiencing a temporary liquidity drought. However, the fact that it maintained a positive trend even with an 88% drop 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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