Institutional investors increased allocations to XRP, Stellar’s XLM and Solana’s SOL based products this year even as market sentiment remains generally tepid and tethered to Fed hikes.
A new report by CCData shows investments in XLM-based products increased by 62.7% to $17.3 million in assets under management (AUM), led by a significant spike in Grayscale’s XLM product, which recorded a premium of over 330%.
Additionally, XRP and SOL-based products recorded increases in AUM of 33.2% and 55.7% to $65.7 million and $87.8 million, respectively.
However, in terms of product volumes, ProShares’ Bitcoin Strategy ETF (BITO) dominated volumes with $179 million in average daily volumes, an increase of 2.96% from June. Grayscale’s bitcoin (BTC) and ether (ETH) trust products followed, with an average daily volume of $83.0 and $31.0 million a 29.7% and 60.4% increase, respectively.
Grayscale is owned by Digital Currency Group, the parent company of CoinDesk.
Earlier this month, a U.S. judge ruled the sale of XRP tokens on exchanges did not constitute investment contracts, bringing some cheer to XRP. The ruling was a partly favorable outcome for Ripple Labs, which has been fighting a nearly three-year long legal battle with the U.S. Securities and Exchange Commission (SEC).
The ruling also caused an uptick in SOL, cardano’s ADA and other altcoins as traders likely considered XRP’s ruling as a favorable outcome for the crypto market. In the past few months, the crypto market has been hit a wave of regulatory actions, especially in the U.S., as it tries to recover from the aftermath of last year’s downturn.
In 2020, the SEC sued Ripple on allegations that the firm sold unregistered securities. Ripple has historically maintained a distance from XRP, the token that powers some of its products and the XRP Ledger network. But any progress in the case clearly has an impact on XRP prices.
XRP is up 1.1% while XLM is up 13%, while SOL was up nearly 7% in the past 24 hours, CoinGecko data shows.
