Have you ever wondered how XRP, the fifth-largest cryptocurrency by market capitalization, is faring in the world of institutional investments? According to James Butterfill, Head of Research at CoinShares, a prominent digital assets manager, there has been a consistent increase in XRP bets throughout the year from major institutional players.
The Legal Tussle with SEC and Its Aftermath
Back in November 2020, XRP found itself in hot water when the U.S. Securities and Exchange Commission (SEC) slapped a lawsuit against Ripple Labs, alleging that they had been selling XRP as an unregistered security. However, the courts ruled partially in Ripple’s favor earlier this year, stating that the automated open-market sales of XRP did not constitute securities offerings, contrary to what the SEC had argued.
This ruling has significantly impacted XRP’s price, leading to fluctuations. But despite these uncertainties, Butterfill revealed that institutional investors have been steadily increasing their stakes in XRP.
Consistent Institutional Interest in XRP
“Certainly, with each new ruling, investors have been adding to their XRP positions consistently, every week. Except for a few weeks of outflows, we have seen inflows for XRP every week this year. It is really positive for XRP in that respect. It just goes to show – when there’s regulatory clarity, investors start backing it,” Butterfill stated.
He further highlighted that regulation tops the list of concerns for crypto investors in all surveys conducted by CoinShares. Until regulatory clarity is achieved, he believes the investment landscape will continue to be uncertain.
XRP’s Current Market Status
At the time of writing, XRP is trading at $0.62, experiencing a slight decrease of 1% in the last 24 hours. Regardless of these short-term fluctuations, the consistent institutional interest in XRP bets throughout the year underscores the potential and confidence that investors have in this digital asset.
For those interested in tracking XRP’s performance and other cryptocurrency trends, the cryptoview.io application can be a useful tool. It offers an intuitive platform to monitor market movements, making it easier for both beginners and seasoned investors to make informed decisions.
Start now using our tools for free.
