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 has been seeing improving clarity, which could be seen as favorable by the investment community.
According to data from CoinShares’ latest Digital Asset Fund Flows report, XRP-focused investment products saw $3 million in inflows over the past week, compared to $300,000 outflows in CoinbShares« last report from 2022. Over the past year, these investment products saw $9 million in inflows.
The rise in inflows comes at a time in which investors are seemingly favoring improving clarity in Ripple’s case with the SEC, which sued the fintech firm and two of its executives in 2020 alleging they sold unregistered securities when they issued $1.3 billion worth of XRP tokens. Ripple denies XRP is a security.
The rise also comes amid “notably euphoric crowd sentiment” for the cryptocurrency as well as for the second-largest cryptocurrency by market capitalization Ethereum ($ETH).
Notably, $XRP holders may also be euphoric because Flare Networks is airdropping its $FLR token to $XRP holders who qualified for it on a December 2020 snapshot. As CryptoGlobe reported, Coinbase has revealed it intends to support the airdrop for users who held XRP at the time of the snapshot, even though it has since delisted the cryptocurrency over the ongoing lawsuit.
The airdrop is set to distribute $FLR tokens to each user holding XRP at the time of the snapshot at a 1:1 ratio. Flare network is a blockchain bringing smart contract functionalities to XRP and other cryptoassets that do not yet have them, although it’s bringing these in through a separate blockchain than the XRP Ledger.
FLR tokens are to be used for governance on the Flare network through voting mechanisms, and token holders will be able to earn a return on their holdings by committing tokens as collateral to secure the trustless issuance and redemption of FXRP, a protocol built to “safely enable the trustless issuance, usage, and redemption, of XRP on Flare.”
CoinShares’ report adds that over the past week, Bitcoin-focused investment products saw minor outflows totaling $6.5 million, marking the flagship cryptocurrency’s third week of outflows.
Meanwhile, Ethereum investment products saw their eighth consecutive week of outflows, with $3 million leaving these products.
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