Increased institutional investments seen this year in XRP, Stellar, and Solana products.

Increased institutional investments seen this year in XRP, Stellar, and Solana products.

The Rising Tide of Institutional Investment in XRP, XLM, and SOL

Institutional investors have been increasing their allocations to XRP, Stellar’s XLM, and Solana’s SOL-based products this year, defying the generally tepid market sentiment and the uncertain impact of impending Fed rate hikes. This surge in investment is highlighted in a recent report by CCData, which reveals that assets under management (AUM) for XLM-based products have increased by an impressive 62.7% to reach $17.3 million. This growth is primarily driven by Grayscale’s XLM product, which has experienced a premium of over 330%. Moreover, XRP and SOL-based products have also seen significant increases in AUM, with rises of 33.2% and 55.7% respectively, reaching $65.7 million and $87.8 million.

While these figures showcase the growing interest from institutional investors in XRP, XLM, and SOL, it is important to explore the reasons behind these investment choices. Part of the explanation lies in the dominance of ProShares’ Bitcoin Strategy ETF (BITO), which has captured attention with its average daily volumes of $179 million, experiencing a 2.96% increase from June. Grayscale’s bitcoin (BTC) and ether (ETH) trust products follow closely, with average daily volumes of $83.0 million and $31.0 million, marking rises of 29.7% and 60.4% respectively.

Grayscale, owned by Digital Currency Group, is a key player in the market, with its products influencing the investment decisions of many institutional investors. Their reputation and track record make them a trusted authority in the cryptocurrency space. As a result, the increased interest in Grayscale’s XLM product indicates a growing confidence in Stellar’s potential and its underlying technology.

Recently, there has been positive news for XRP, as a U.S. judge ruled that the sale of XRP tokens on exchanges does not constitute investment contracts, providing some relief for the cryptocurrency. This ruling is seen as a partial victory for Ripple Labs, which has been engaged in a lengthy legal battle with the U.S. Securities and Exchange Commission (SEC) over allegations of selling unregistered securities. This development not only boosted XRP prices but also had ripple effects across the cryptocurrency market, with upticks in SOL, cardano’s ADA, and other altcoins. Traders interpreted the ruling as a favorable outcome, signaling a potential easing of regulatory actions that have plagued the crypto market in recent months.

The impact of the legal battle on XRP prices emphasizes the close connection between a cryptocurrency and the legal challenges faced by its parent company. Ripple and XRP have historically maintained a degree of separation, but any progress made in the case directly influences the market value of XRP.

Examining the recent price movements, XRP has enjoyed a modest increase of 1.1%, while XLM has surged by an impressive 13% and SOL soared nearly 7% in the past 24 hours, as per CoinGecko data. These numbers demonstrate the growing confidence in these cryptocurrencies, possibly driven by institutional investors who have recognized their potential for long-term growth.

In conclusion, the blockchain industry is witnessing a notable surge in institutional investment in XRP, XLM, and SOL. Despite the general market uncertainty and regulatory challenges, these cryptocurrencies have managed to capture the attention of institutional investors through performance and potential. The involvement of trusted institutions like Grayscale adds further credibility to these investments. With increasing institutional interest and ongoing legal battles shaping their future, XRP, XLM, and SOL may continue to ride the rising tide of institutional investment within the blockchain industry.

Disclaimer: The article has been edited by Parikshit Mishra.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Bitcoin

Bitcoin speculators retreat as long-term holders double down from $69,000 peak.

The Bitcoin market consistently uncovers lucrative trends and patterns that are highly beneficial for both long-term ...

News

AllUnity: The Euro Stablecoin Revolution

DWS set to manage reserves for new stablecoin in order to maintain its value.

Market

AltSignals' stage two presale exceeds 50%: should you join now?

'AltSignals' stage-two presale has achieved remarkable success, surpassing 50% as an increasing number of investors e...

Bitcoin

Bitcoin and Dogecoin heading to the Moon with BitMEX's space mission.

Exciting prospects are on the horizon as both BitMEX and Dogecoin are venturing into space with the aim of either pro...

DeFi

Escalating Fees: A Comedy of Errors in the Crypto Universe

Industry experts argue that the recent spike in gas fees on Ethereum and Bitcoin is a clear sign of growing on-chain ...

Bitcoin

ByteFederal launches Bitcoin ATMs in Australia

In celebration of its debut, ByteFederal Australia is delighted to present exclusive limited-time promotions, invitin...