Summary
- Expectations for a recovery in institutional demand are rising as inflows into XRP spot ETFs and ETPs continue to expand.
- Net inflows and assets under management (AUM) for XRP ETPs and spot ETFs have climbed to record levels.
- The increase in institutional inflows and improving on-chain and derivatives market indicators could have a positive effect on XRP's price.
Forecast Trend Report by Period
Inflows into spot XRP exchange-traded funds and exchange-traded products are accelerating, raising expectations that institutional demand is beginning to recover.
CoinShares said on May 12 that XRP ETPs posted $40 million of net inflows in the week through May 8. Year-to-date net inflows increased to $191 million, while assets under management grew to about $2.5 billion.
James Butterfill, CoinShares' head of research, called it a notable acceleration in inflows. He attributed the improved sentiment in part to recent progress in discussions around the CLARITY Act, a US crypto market structure bill.
Flows into spot XRP ETFs are also strengthening. More than $25 million entered the products on Monday, marking a fifth straight trading day of net inflows. That was the largest daily inflow since January.
Assets under management for spot XRP ETFs have now risen to about $1.18 billion, while cumulative net inflows reached a record $1.35 billion.
The increase in institutional inflows could also support XRP prices, according to market observers. Crypto analyst Xaif Crypto said institutional money is moving into XRP faster than the market had expected.
On-chain and derivatives indicators are improving as well. CW8900, a contributor to CryptoQuant, said the 90-day cumulative volume delta, or CVD, in XRP's spot market had turned positive, a sign that bullish pressure is building.
XRP futures open interest has risen about 23% so far in May. Some traders view the token as preparing for a further advance.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
