Ripple Attracts Institutional Investors Beyond Bitcoin: XRP’s Continued Rise

Institutional investors have continued their crypto investments beyond Bitcoin, with a focus on Ripple (XRP), the fifth-largest digital asset by market cap.

According to a report, these investors have poured funds into XRP for the 16th consecutive week. The report highlighted a 127% increase in assets under management for XRP products since the year’s outset, indicating growing interest. CoinShares’ Head of Research, James Butterfill, revealed that XRP received $11.25 million of investor capital since the beginning of 2023.

This increased optimism stems from recent developments in the ongoing legal conflict between Ripple Labs and regulators. A federal district judge’s partial ruling deemed that programmatic sales of XRP to retail investors did not classify as securities, providing a positive outlook. Although the judge acknowledged $728 million worth of institutional sales contracts as unregistered securities sales, both investors and Ripple Labs interpreted the ruling favorably.

Following this positive development, XRP’s price surged further, adding to its momentum this year. Ripple’s General Counsel, Stu Alderoty, expressed his anticipation of U.S. banks returning to use the firm’s On-Demand Liquidity (ODL) product. CoinShares’ report also highlighted that institutional investors allocated $29 million to digital asset investment products in the past week, potentially influenced by recent U.S. inflation data suggesting a reduced likelihood of a September rate hike.

While the primary focus remains on Bitcoin, with $27 million directed towards large funds for accredited investors such as Grayscale, 3iQ, and 21 Shares, the sustained interest in Ripple showcases a broader investment perspective among institutional players.

Clever Robot News Desk 15^th August 2023