In 2023, the XRP-focused exchange-traded products (ETPs) sector experienced substantial growth, as revealed in the annual report published by CoinShares.
The report shared on January 3rd indicated a doubling of inflows compared to the previous year, with XRP ETPs closing 2022 at $8 million and surging to an impressive $16 million by the end of 2023.
XRP ETPs secured the third spot among alternative cryptocurrencies, trailing Solana (SOL) and Ethereum (ETH). Notably, XRP’s assets under management reached a significant $77 million.
However, despite this surge, the $16 million garnered by XRP ETPs in 2023 fell short of the pinnacle achieved in 2021 when the figure soared to an impressive $63 million. This peak in 2021 marked a year when cryptocurrencies reached an all-time high, resulting in a substantial influx of funds into investment solutions like ETPs.
Looking ahead to 2024, the landscape remains promising yet uncertain for XRP. The question emerges: Can XRP surpass its previous records?
Multiple XRP-oriented investment products are available in the market, including GXRP from ETC Group, AXRP from 21Shares, and the highly anticipated Valour Ripple XRP ETP. These offerings set the stage for potential breakthroughs in the coming year.
The year 2023 showcased a remarkable 100% increase in fund inflows for XRP. Industry experts are closely monitoring the unfolding of the new year, observing whether the digital asset can reclaim its previous heights or encounter new challenges in the evolving market landscape.
XRP Drops Nearly 20% Amidst Broader Market Crash, Approaches Oversold Territory
Amid the recent market downturn, Ripple’s XRP faced a significant decline, dropping almost 20%. The Matrixport report triggered substantial liquidations, impacting XRP more severely than other assets in the market.
This drop occurred despite XRP’s earlier lack of substantial gains. The token hit a three-year low against Bitcoin, falling to $0.5, levels not seen since the SEC lawsuit that claimed XRP was a security.
The ADX indicator suggests a potential for a reversal as XRP edges closer to the oversold region. This decline in price comes in tandem with broader market speculation about the potential rejection of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC).
Unlike other altcoins, Ripple’s price reaction was notable for its stark deviation from the general market trend, suffering even without previous significant upward movements.
Amidst these market fluctuations, XRP’s recent drop stands out as a significant event, reflecting the impact of broader market sentiments and the unique position of Ripple’s price movement amidst market uncertainties.