XRP ETFs Drive $130M Inflows as Altcoin Tests Key Resistance Level
- XRP ETFs absorbed 80 million tokens worth $130 million on November 24 launch day.
- Grayscale’s GXRP and Franklin Templeton’s XRPZ led inflows with strong debut performance.
Recently introduced XRP exchange-traded funds have attracted a substantial investor interest, thereby, in their initial trading, they have taken in around 80 million tokens valued at $130 million. The total assets under management were extended to $778 million by the robust demand from the institutional side; thus, the performance of the recent crypto ETF issuance has been surpassed, while XRP is retesting the key resistance level of $2.20.
Strong Debut Signals Growing Institutional Interest
The quick buildup on the occasion of the November 24 launch was a major factor in the performance of the debut of Grayscale XRP versus the other cryptocurrency ETFs. Grayscale’s GXRP product led the way with a whopping $67.4 million in fresh capital. On the other hand, Franklin Templeton’s XRPZ managed to attract $62.6 million from investors who were looking for a regulated exposure to the digital asset.
Moreover, these inflows took place against the backdrop of market headwinds, such as the outflow of Bitcoin-focused investment products during the same time, as per the industry tracking data from XRP Insights.
There are four XRP ETFs that are presently available on US exchanges. Canary’s XRPC is the most successful one, having been the earliest launch; it has a total net inflow of $331 million.
Bitwise’s rival instrument has accumulated $168 million, thus confirming that there is a continuous demand for a few providers that offer similar exposure to the price changes of the token and the blockchain network that is the base.
The next launch is speculated by market watchers to be around the corner. 21Shares’ TOXR product is said to be scheduled for November 29 after receiving the green light from the SEC.
The XRP token has been a beneficiary of ETF momentum and as a result, it has gone up by 5% in the last week from $1.90 to close resistance at $2.20 per token.
Chart analysts spot a bullish flag pattern for the shorter timeframe; thus, if buyers are able to keep the pressure at the current level and even go further, the target may be around $2.35 to $2.45.
On the other hand, the altcoin is still under its 50, 100, and 200-period exponential moving averages which means that the larger trend has not changed to bullish yet.
Not being able to decisively break through the $2.20 resistance level might lead to retracements of the price going back to the support levels between $2.00 and $2.10, where buying seems to have been strong during the previous dips.
The relative strength index is still above 50, which means that the short-term buying momentum is with the buyers; however, continuous ETF inflows will be the main factor in creating a durable upward price trend.
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