Institutional investors continue to pour money into cryptocurrency investment products, with the latest report from CoinShares showing another week of strong inflows.
Over the past week, $1.3 billion flowed into digital asset investment products, marking the fifth consecutive week of positive investment.
So far this year, the total inflows have reached $7.3 billion, showing that institutional interest in crypto remains strong despite market fluctuations.
While Bitcoin ($BTC) continued to attract investment, Ethereum ($ETH) was the real standout this week, bringing in more inflows than Bitcoin for the first time in 2024.
At the same time, XRP ($XRP) saw surprisingly strong inflows, significantly outpacing Solana ($SOL), which had previously been one of the most dominant altcoins.
Outperforming Bitcoin in weekly inflows
Bitcoin remains the most dominant cryptocurrency, and institutional investors continued to invest heavily in Bitcoin-based products. Over the past week, Bitcoin investment products saw inflows of $407 million.
Additionally, exchange-traded products (ETPs) holding Bitcoin now account for 7.1% of its total market capitalisation, making them the largest holders of the asset compared to any other entity.
However, the biggest development this week was Ethereum surpassing Bitcoin in terms of inflows. After the price of Ethereum dropped to around $2,100, investors took the opportunity to buy in at a lower price.
This led to inflows of $793 million into Ethereum investment products, making it the first time in 2024 that Ethereum has attracted more institutional investment than Bitcoin in a single week.
This shift suggests that investors are showing increasing confidence in Ethereum’s long-term potential. Some experts believe that factors such as upcoming network upgrades and the growing use of Ethereum in decentralised applications (dApps) could be driving this interest.
“The inflows into Ethereum show that institutional investors are seeing value in the asset, especially at lower price levels”, said a market analyst. “While Bitcoin still dominates the market, Ethereum’s strong performance this week highlights its growing importance.”
XRP outpaces SOL in institutional investment
Other cryptocurrencies also saw inflows this week, but the biggest surprise was the difference between XRP and Solana. XRP investment products saw inflows of $21 million, while Solana investment products only brought in $11 million.
What makes this even more interesting is the year-to-date comparison. Since the start of 2024, XRP ETPs have received a total of $152 million in inflows.
That is a massive 330% more than Solana’s inflows, despite Solana being one of the most talked-about altcoins over the past year.
This trend is unexpected because Solana has been gaining popularity for its high-speed transactions and growing adoption in decentralised finance (DeFi) and non-fungible tokens (NFT) projects.
In contrast, XRP has faced regulatory challenges, particularly with its ongoing legal battle with the US Securities and Exchange Commission (SEC).
Some analysts believe that XRP’s strong inflows could be due to investors betting on a favourable outcome in its legal case.
Others suggest that XRP’s increasing use in cross-border payments and financial institutions is making it a more attractive investment option.
“This shift in investment trends is something to watch”, said a market analyst. “Solana has been one of the strongest-performing altcoins, but the fact that XRP is attracting more institutional money suggests a change in investor sentiment.”
Ripple expands to Portugal through new partnership
In other news, Ripple has announced a major expansion in Europe by partnering with Unicâmbio, a Portuguese currency exchange provider.
This partnership aims to bring faster and cheaper cross-border payments between Portugal and Brazil using blockchain technology.
For businesses in Portugal, this partnership means they will be able to send money to Brazil more efficiently, with lower costs and faster processing times.
Given the strong economic and cultural ties between Portugal and Brazil, this new payment system is expected to be widely adopted by companies and individuals sending money between the two countries.
Portugal has been steadily increasing its adoption of cryptocurrencies, making it an ideal location for Ripple’s expansion.
The company has already established a strong presence in Brazil, where it works with financial institutions like Travelex Bank and Mercado Bitcoin. By partnering with Unicâmbio, Ripple is further strengthening its foothold in the European market.
Ripple’s payment system relies on XRP to provide liquidity and ensure seamless transactions. This makes it easier for financial institutions to move money without needing traditional banking intermediaries.
Ripple’s partnership with Unicâmbio is therefore significant for XRP, as it reinforces the token’s role in global payments. By integrating XRP into cross-border transactions between Portugal and Brazil, the partnership boosts its real-world utility and demand.
As financial institutions adopt Ripple’s blockchain-based solutions, XRP benefits from increased liquidity and transaction volume. This strengthens its position as a key asset in the payments industry, making it more attractive to institutional investors.
Additionally, as Ripple expands into new markets, XRP’s adoption could grow further, solidifying its role in the future of digital finance.
As demand for faster and cheaper cross-border payments grows, Ripple’s use of blockchain technology is positioning it as a key player in the industry.
“Blockchain technology is revolutionising how money moves globally”, said a Ripple spokesperson. “With this partnership, we’re making cross-border payments more efficient and giving businesses in Portugal a better way to send money internationally.”
Crypto investment continues to grow
The latest investment trends show that institutional investors are still highly interested in crypto, even as prices fluctuate. The total assets under management (AUM) in crypto investment products currently stand at $163 billion.
This is down from the all-time high of $181 billion recorded in late January, reflecting recent price declines. However, trading volumes have remained stable at around $20 billion per week.
Regionally, the United States led the way in crypto investment inflows, accounting for $1 billion of the total $1.3 billion inflows. Other countries also saw strong interest, with Germany, Switzerland, and Canada bringing in $61 million, $54 million, and $37 million in inflows, respectively.
The increasing investment in Ethereum, the rise of XRP, and Ripple’s expansion into Portugal all highlight the broader trend of growing institutional involvement in digital assets.
Even as regulatory uncertainty continues, large investors are continuing to place their bets on the long-term future of blockchain technology.
Overall, the latest figures reinforce that crypto investment products remain a key focus for institutions, with Ethereum and XRP emerging as assets to watch closely in the coming months.
