XRP-based exchange-traded funds (ETFs) have exceeded $1 billion in assets due to the token’s long-standing recognition among traditional investors coupled with its consistent price performance in recent years, according to CF Benchmarks CEO Sui Chung.
While spot Ether (ETH) ETFs are experiencing outflows, Bitcoin (BTC) ETFs have shown inconsistent performance lately.
“Many investors are taking a position in XRP because of the familiarity. It has a long track record,” Sui Chung stated in an interview with CNBC on Wednesday.
XRP’s 3-Year Performance Noticed by Investors
Chung highlighted that XRP’s strong returns over the years have contributed to its appeal for investors.
“Obviously, price performance has been pretty impressive over the past three or four years, so there are a number of reasons that it’s attracting investor dollars,” he added.
XRP is currently trading at $1.81 and has seen an overall increase of approximately 417% since 2022, although it has dropped 22.81% since the start of the year, as per CoinMarketCap.
Since mid-November, spot XRP ETFs have seen inflows amounting to $423.27 million and have recently surpassed $1 billion in total assets under management. The five largest issuers of XRP ETFs (Canary Capital, 21Shares, Grayscale Investments, Bitwise Asset Management, and Franklin Templeton) hold approximately $1.14 billion in assets.
Understanding Solana’s Investment Case
In another development, Chung remarked that investors are starting to grasp the potential of Solana (SOL), leading to increased inflows into Solana ETFs. Over the last nine days, these ETFs recorded $102.8 million in net inflows, according to CoinGlass.
“The understanding that traditional investors have of Solana and the types of applications that run on Solana, the types of fees that Solana has, and the daily active users makes for a pretty compelling reading,” Chung explained.
The growth in demand for both Solana and XRP ETFs is in tandem with the heightened volatility seen in trading the two largest cryptocurrencies by market capitalization, namely Bitcoin and Ethereum, within US-based ETF products.
Spot Ether ETFs have experienced consecutive outflows totaling $533.1 million, while Bitcoin ETFs had some recovery on Thursday with $457.3 million in inflows after prior outflows of $634.8 million over the two preceding sessions.
