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 could soon be settled.
According to data from CoinShares’ latest Digital Asset Fund Flows report, XRP-focused investment products saw $800,000 of inflows last week, which are relatively small compared to BTC’s $4.6 million in inflows over the same period, but represent “the largest since the lawsuit with the SEC began.”
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. 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.
CoinShares’ report notes that XRP saw larger inflows in a week in which digital asset investment products saw a total of $5 million worth of inflows in a continuation of this apathetic period that began in September.”
Other altcoins, including Ethereum, BNB, and Cardano also saw minor outflows, while products shorting Bitcoin saw $7.1 million of outflows. Along with BTC and XRP, Solana ($SOL) investment products saw positive flows of $400,000.
Last month Jeremy Hogan, an XRP proponent, and a U.S. legal counsel, noted that another XRP proponent’s analysis of the lawsuit was “great” and that he is interested to see in the summary judgment briefings “to what extent Ripple makes the comparison between XRP and ETH.”
The comparison between XRP and ETH is relevant, it’s worth noting, as an SEC spokesman has said ETH and BTC aren’t securities.
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