The post Institutional Interest Shifts: XRP, XLM, and SOL Stand Out in 2023 appeared first on Coinpedia Fintech News
In 2023, institutional investors have shown a growing interest in cryptocurrencies like XRP, Stellar’s XLM, and Solana’s SOL, even amidst a lukewarm market sentiment and concerns over potential Federal Reserve interest rate hikes.
According to a recent report by CCData, investments in XLM-based products saw a significant surge of 62.7%, reaching $17.3 million in assets under management (AUM). Grayscale’s XLM product experienced a remarkable spike, commanding a premium of over 330%.
Products based on XRP and SOL also saw considerable increases in assets under management, rising by 33.2% and 55.7%, respectively. XRP-based products reached a total of $65.7 million, while SOL-based products impressively reached $87.8 million in AUM.
Despite these gains, the product volumes were still dominated by ProShares’ Bitcoin Strategy ETF (BITO), which recorded an average daily volume of $179 million, representing a 2.96% increase from the previous month. Grayscale’s bitcoin (BTC) and ether (ETH) trust products followed with average daily volumes of $83.0 million and $31.0 million, showing significant increases of 29.7% and 60.4%, respectively.
A recent US ruling ended up being positive for XRP
A positive development for XRP came with a recent U.S. judge’s ruling, stating that the sale of XRP tokens on exchanges did not constitute investment contracts. This ruling provided some relief to Ripple Labs in its long-standing legal battle with the U.S. Securities and Exchange Commission (SEC), which has persisted for nearly three years.
The ruling’s impact was not limited to XRP alone. It also had a positive effect on SOL, Cardano’s ADA, and other altcoins, as traders perceived it as a favorable outcome for the entire crypto market. The crypto market has been facing increased regulatory scrutiny, particularly in the U.S., while simultaneously trying to recover from the effects of the previous year’s market downturn.
The SEC sued Ripple in 2020, alleging that the company had sold unregistered securities. Ripple has consistently maintained a distinction between XRP, the token powering some of its products, and the XRP Ledger network. However, developments in the case have proven to influence XRP’s prices.
Overall, despite the challenges and uncertainties in the market, institutional investors’ growing interest in XRP, XLM, and SOL-based products indicates a continued belief in the potential of these cryptocurrencies.