Cryptocurrency investment products linked to the native token of the XRP Ledger have seen a remarkable upswing in institutional interest, with data showing that products offering exposure to $XRP have seen their assets under management surge to an estimated $76 million.
This demonstrates a soaring institutional enthusiasm for the token, particularly evident in the robust 57% year-to-date increase in XRP-focused exchange-traded products (ETPs), according to recent data from Fineqia International.
This surge comes amidst a backdrop of ongoing legal intricacies, with a recent ruling from Judge Analisa Torres in the case the U.S. Securities and Exchange Commission (SEC) brought against XRP differentiating between sales to institutional investors and on exchanges, noting the token itself isn’t necessarily a security.
Earlier this week, the SEC revealed its intent to file an “interlocutory appeal” against Judge Analisa Torres’ recent ruling on Ripple’s programmatic XRP sales. The SEC is particularly keen to clarify the court’s interpretation of whether certain sales and offers of XRP by Ripple, especially over cryptocurrency trading platforms and in exchange for services, fell within the parameters defined by the Howey test, a standard for defining securities.
The SEC noted Ripple now has to respond by August 16, and if the appeal proceeds the regulator plans to present its opening brief by August 18, to which Ripple would have two weeks to respond.
Notably, blockchain data shows that the XRP Ledger has been seeing over 1.2 million transactions per day since the beginning of August, surpassing the number of daily transactions seen on the second most popular network in the cryptocurrency space, Ethereum ($ETH), which has recorded 1.09 million a day.
As CryptoGlobe reported, XRP has seen its market capitalization drop by nearly $10 billion from its peak this year.
Featured image via Pixabay.