$XRP-Focused Investment Product Inflows Surge as Investors See SEC’s Case Against Ripple ‘Increasingly Fragile’
Cryptocurrency investment products offering investors exposure to $XRP have recently seen significant inflows, at a time in which the U.S. Securities and Exchange Commission’s (SEC) case against Ripple and two of its executives is being seen as “increasingly fragile” by investors.
According to data from CoinShares’ latest Digital Asset Fund Flows report, XRP-focused investment products saw $1.1 million worth of inflows last week, up from around $800,000 late last month. The inflows meant $XRP investment products were the second largest in the market after Ethereum-focused products, which saw $2.7 million in inflows.
Bitcoin investment products, it’s worth noting, saw $13.2 million of outflows last week. Per CoinShares, XRP’s inflows imply that investors’ confidence in the SEC losing its case against Ripple is improving.
The price of XRP soared last month, as CryptoGlobe reported after reports revealed that both Ripple and the SEC were looking for a ruling in their long-running legal battle through a so-called summary judgment.
The filings suggest neither party wants the legal action to continue to a full trial. The SEC sued Ripple and two of its executives in 2020, alleging they sold unregistered securities when they issued $1.3 billion worth of XRP tokens. Ripple denies XRP is a security.
Earlier this year, Ripple’s CEO Brad Garlinghouse noted that he believed the company would prevail in its legal battle against the regulator. Over the past few weeks a number of influential cryptocurrency firms, including Coinbase and the Blockchain Association, filed to support Ripple.
In total, 12 companies have filed to support the fintech firm:
Garlinghouse has noted that despite the support and the calls for a summary judgment, the case could still take months. Ripple settling the lawsuit could lead to an XRP supply shock, which presumably would lead to a price surge as demand would remain the same, while supply plunged. That’s according to legal expert and XRP supporter Jeremy Hogan, who has been following the case.
Hogan has recently weighed in on a ruling by the United States District Court in favor of the SEC against blockchain-based file-sharing network LBRY. The court LBRY violated securities laws by selling its native LBC tokens without registering with the Sec. Per Hogan, the results could make their way into the SEC’s final brief in the Ripple case.
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