Wealthy investors are still gloomy about cryptocurrencies – but not XRP

Research shows that cryptocurrency fund investors are still very pessimistic about the cryptocurrency industry – but not when it comes to XRP.

Monday’s report by CoinShares He said that despite $9.7 million in cash flows from digital asset investment products last week, investors have wired $3 million into XRP. These types of products are only available to accredited investors, who must meet certain income requirements in accordance with the Securities and Exchange Commission.

XRP is the sixth largest digital asset by market cap and was created by the founders of the blockchain payments company Ripple Labs. Ripple was launched to help banks and other financial institutions move money quickly and with very low fees.

But the company has been embroiled in a legal battle since 2020 with the US Securities and Exchange Commission Accused Ripple and two of its co-founders for misleading investors by raising $1.3 billion in unregistered securities offerings since 2013; Ripple denies that its XRP token is a security.

The case has dragged on over the years, but a verdict is expected in the first half of this year.

“We believe that the improved clarity of its case before the SEC is seen as increasingly favorable to XRP by the investment community,” CoinShares said, adding that XRP inflows last week accounted for 9% of assets under management.

Ripple is trying to open a store outside the US in November, Ripple attorney Stuart Alderoty said He said that the company operates outside the US, due to the regulatory climate, and was looking into licensing a Virtual Asset Service Provider (VASP) from the Central Bank of Ireland.

CoinShares also said in its report that investors are still withdrawing funds from Bitcoin investment products. Last week, $6.5 million remained – the third straight week of outflows – “highlighting the persistent negative sentiment”.

Instead, investors put $1.2 million into short bitcoin products, betting that the cryptocurrency’s price would drop.

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The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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