According to research, institutional investors have been pouring more money into the altcoin space, with many of them recently investing in XRP amid increased activity on exchanges like Bitstamp.
The latest report from CoinShares reveals that digital asset investment products have seen outflows for the sixth consecutive week, despite low trading volumes. Of the $9 million withdrawn, Bitcoin witnessed the largest outflow, with $5.9 million leaving Bitcoin investment products.
On the other hand, inflows into XRP digital asset products have surged from $0.1 million the previous week to $0.7 million in institutional inflows this week, marking a 700% increase compared to the previous week and a continued shift in institutional capital flows over the past month.
The last time the token witnessed this kind of capital inflow was following Ripple’s partial victory in court, where $0.5 million flowed into digital asset investment products.
Several factors are driving institutional investors towards altcoins. Firstly, XRP has performed well and delivered more profits than most cryptocurrencies this year. Additionally, Ripple, the company behind the token, has made progress in expanding the utility of the XRP Ledger through partnerships with various financial institutions and payment providers.
It’s worth noting that recent capital inflows into XRP may be linked to the upcoming Ripple Party. According to the payment technology company, the Ripple Party to celebrate Ripple’s partial victory against the SEC is scheduled for September 29th.
The recent increase in institutional interest and investment in XRP and other altcoins like Litecoin and Solana could signal a forthcoming major price rally.
However, according to a cryptocurrency analyst, investors may have to wait another five years before cryptocurrencies reach all-time highs.
Altcoins are currently trading at $0.5022, experiencing a 3.99% decrease over the past 7 days.