Bitcoin ETFs Drive $1.1B Inflows, XRP Benefits from Positive Sentiment

Introduction

According to the most recent CoinShares report, digital asset investment products received $1.1 billion in inflows in the past week. This brings the year-to-date inflows to $2.7 billion, with assets under management (AuM) reaching its highest level since early 2022 at $59 billion.

Focus on Bitcoin ETFs

The attention remains on the recently launched spot-based Bitcoin ETFs in the United States. These ETFs saw a net inflow of $1.1 billion last week, bringing the total inflows to $2.8 billion since their inception on Jan. 11.

XRP Inflows

XRP, the sixth-largest cryptocurrency by market capitalization, also experienced inflows. It received $0.3 million in inflows for the second consecutive week, following $0.1 million in inflows the week before. XRP's year-to-date flows now total $4 million.

Positive Sentiment for XRP

XRP appears to have benefited from the positive sentiment surrounding the approval and launch of the first Bitcoin exchange-traded funds (ETFs) in the U.S. This has sparked enthusiasm and interest in the cryptocurrency market.

XRP Price Action

At the time of writing, XRP is down 2.84% in the last 24 hours, trading at $0.518. The price reached highs of $0.5316 on Feb. 11 before sellers took a profit.

Key Levels to Watch

In the immediate term, the daily moving averages of 50 and 200 at $0.557 and $0.57, respectively, are important levels to keep an eye on. If buyers overcome these hurdles, XRP might begin its journey toward the $0.623 mark. A break and close above this critical level could imply that the bulls are back in control, with XRP potentially rising to $0.67.

On the other hand, critical support on the downside is $0.50. Given that the bears were unable to drop and sustain XRP below the $0.50 support level at the end of January, the bulls may be defending it. A close below this level might signal that the bears have the upper hand, and XRP may fall to $0.46.