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The Institutional Flow Of Investment In XRP Almost Doubled AUM

Last week there was strong interest in Ripple from institutional investors. During this period, they invested $33 million in XRP tokens. At the same time, the number of assets under management (AUM) has doubled.

Such data are published in the weekly “Digital Asset Fund Flows” report by the CoinShares portal. The volume of tokens under management (AUM) also grew to $83 million.

Therefore, the past week is characterized as the most “bullish” since the beginning of March. At that time, institutional investors invested about $ 233 million in crypto products.

In general, there is a renewed activity on the altcoin market. The Ethereum coin received an inflow of $65 million, Binance Coin got $4 million, the DOT token earned $5 million, and the Tezos cryptocurrency raised $7 million. Besides, the so-called multi-asset networks and wallets attracted $ 6 million.

As for the number of assets under institutional management, Bitcoin is on top (78% of the total) with $50 billion. In the second place, we have Ethereum (about 17%) with $ 10.7 billion. The rest of the crypto assets have much lower indicators:

  • Binance Coin – $571 million
  • Polkadot – $45 million
  • Bitcoin Cash – $16 million.

However, this week was not only marked by significant investments in digital assets. Institutional crypto trading grew by 59%. Now its volume is $4.8 billion. Also, the prices of some tokens have been beaten their historical highs. It increased the total market cap of cryptocurrency investment products to $64 billion.

At the same time, the Grayscale Investments fund has the greatest control over institutional crypto assets – 77% of the total (about $50 billion). The rest of the companies own a much smaller number of tokens. So, the share of Grayscale is 9% ($5.7 billion), and 3iQ – 3% ($1.9 billion).

It seems that the demand for institutional products is growing very strongly. It’s facilitated by steps from the North American financial regulators. So, Canadian organizations approved trading in three Ethereum stock ETFs. They will be issued by Purpose Investments, Evolve ETFs, and CI Global Asset Management. Before that, similar Bitcoin indices from the same funds were successfully launched.

Earlier, the management of Ripple Labs filed a motion for dismissing the case against the company by the United States Securities and Exchange Commission. This news had a positive effect on the XRP token rate – it broke through the $1 mark once again. So, on April 13, the value of the asset was $1.63. Therefore, the total market cap of Ripple grew by 18.8% to $74.3 billion.

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