Ripple, Solana, and Stellar-based products attract significant institutional investments amid market recovery.

Ripple, Solana, and Stellar-based products attract significant institutional investments amid market recovery.

The Rise of Institutional Investments in the Blockchain Industry

The blockchain industry continues to attract institutional investments, driven by recent market successes and other macroeconomic factors. Crypto analytics firms have reported significant inflows into digital assets, with Bitcoin (BTC) leading the way alongside other popular tokens such as Ripple (XRP), Solana (SOL), and Stellar (XLM) 1.

XLM-based products have seen a remarkable increase of 62.7% in assets under management (AUM), totaling $17.3 million 2. Grayscale’s Stellar Lumen Trust XLM product, in particular, has experienced a premium of over 330%, making it the top gainer in this period 3. XRP, on the other hand, has witnessed a growth of 33.2% in asset-based products following its partial win over the SEC 4. Solana also saw a significant increase of 55.7% in its assets, with the total AUM reaching $87.8 million 5. These investments indicate growing confidence in these blockchain projects and their potential for future growth.

The boost in institutional investments can be attributed to Ripple’s recent victory over the SEC regarding the sale of assets to the public 6. While sales to certain investors were deemed a violation, the outcome of the legal battle was seen as a positive development in the industry 7. This victory has created a ripple effect, with XRP experiencing a price surge of over 62% alongside other altcoins, pushing the market into the green zone 8. Solana and XLM have also enjoyed considerable gains of 6% and 13.4% respectively in the last seven days 9.

It is interesting to note that the price of XLM has shown a close correlation with XRP, with a significant surge of over 60% following the court ruling against the SEC 10. This connection between the two assets highlights the interconnectedness and the impact of regulatory decisions on the blockchain market.

While XRP, SOL, and XLM have been attracting attention, BTC remains the primary focus for institutional investors, particularly in North America 11. Despite initial concerns raised by the SEC’s rejection of some BTC spot ETC applications, further changes made to the applications have renewed investor confidence 12. BTC products have consistently dominated the market, with CoinShares reporting consistent inflows in previous weeks totaling $742 million 13. While a slight outflow of $6.5 million occurred last week, BTC remained the top choice, as investors eagerly await the approval of the first ETF 14.

In terms of trading volumes, ProShares BITO has seen a 2.9% increase in average daily volume, with $179 million recorded, followed by Grayscale’s Bitcoin and Ethereum products with $83 million and $31 million respectively 15. These robust trading volumes reaffirm the growing interest from institutional players in the blockchain industry.

In summary, institutional investments in the blockchain industry have seen significant growth in recent weeks, with XRP, SOL, and XLM displaying strong performance 16. Ripple’s legal victory, along with the ongoing demand for BTC-based products, has fueled this surge in investment 17. These developments highlight the increasing recognition of blockchain technology and its potential disruptive impact in various sectors. The dominance of the United States in terms of asset under management further underlines the country’s leading position in the adoption and development of blockchain-based financial products 18.

References


  1. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  2. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  3. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  4. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  5. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  6. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  7. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  8. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  9. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  10. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  11. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  12. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  13. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  14. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  15. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  16. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  17. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎

  18. Institutional investments continue to flow into digital asset-related products. (n.d.). Cointelegraph. Retrieved from https://cointelegraph.com/news/institutional-investments-continue-to-flow-into-digital-asset-related-products↩︎