Weekly net inflows for spot XRP and Solana Exchange Traded Funds (ETFs) experienced a substantial decrease, with XRP ETFs seeing a 94% drop and Solana ETFs declining by over 97% week-over-week. The week in question concluded around October 1st, 2023.
XRP ETFs recorded $4.74 million in net inflows for the week, a sharp contrast to the $75.59 million attracted during the preceding five-day trading period. The week began with investors pouring nearly $4 million into XRP ETFs. However, demand appeared to wane as SoSoValue data shows $0.00 in net inflows on Tuesday and Wednesday. While inflows resumed on October 1st with $4.07 million, the week concluded with $3.28 million in net outflows on Friday. Despite this significant decline in weekly inflows, XRP ETFs extended their streak of consecutive positive net inflow weeks to 12.
Solana ETFs also faced a considerable reduction in investor interest. After attracting $188.22 million in the previous week, their net inflows for the reported week fell to $2.43 million, marking a decline of over 97%. The week started strong for Solana ETFs, with $12.70 million in inflows on Monday and an additional $5.44 million on Tuesday. Investor sentiment shifted mid-week, with $11.10 million in net inflows on Wednesday and $5.91 million on Thursday. Friday saw a modest $1.30 million in net inflows, helping to maintain a positive weekly total.
During this period, the underlying assets also experienced price volatility. XRP faced resistance at $1.55 and dipped to $1.45 on Friday amid a market-wide correction, though it has since recovered to trade around the $1.50 level. Solana (SOL) saw its price rise above $123 mid-week, but a Friday crash pushed it below $118. As of press time, SOL has recovered to the $129 level.
The substantial drop in demand for both XRP and Solana ETFs raises questions about current investor sentiment. While XRP ETFs maintain a notable streak of positive inflows, the sharp week-over-week decline for both products suggests a potential cooling of investor appetite. The exact reasons for this decrease in demand remain uncertain, as does whether this trend will continue in the coming weeks.
Why This Matters
Weekly net inflows for spot XRP and Solana Exchange Traded Funds (ETFs) saw a substantial decrease, with XRP ETFs experiencing a 94% drop and Solana ETFs declining by over 97% week-over-week. The exact reason for the significant drop in ETF demand remains uncertain.
Broader Context
The business week began on a higher note for the Ripple ETFs, with investors pouring in almost $4 million.
