Institutional Investors Bet on XRP Amid SEC Court Case Update
A new report by CoinShares showed that XRP was the sole cryptocurrency that saw positive investor sentiment last week for digital asset funds, recording $3 million in inflows. This was not the case for other crypto tokens, as overall sentiment remains negative, with digital asset investment products registering total outflows of $9.7 million.
Bitcoin and Ether Funds Continue Bad Streaks as Overall Sentiment Remains Negative
The report showed XRP was the only cryptocurrency that recorded significant inflows last week, likely because the crypto community is more optimistic about Ripple’s battle against the SEC following new updates.
Overall, digital asset investment products recorded outflows of $9.7 million last week, marking the continuation of a negative sentiment that recently emerged. Additionally, total assets under management (AUM) declined to $20.5 billion last week, the lowest point since the FTX fiasco in November.
Trading volumes in major cryptocurrencies were also low last week, with Bitcoin volumes averaging $5 billion daily, down from $9 billion per day in 2022. Funds based on the world’s biggest cryptocurrency saw $6.5 million in outflows in the week, while Ethereum and multi-asset investment products recorded outflows of $3.1 million and $4.5 million, respectively.
The data marks a third consecutive week of minor outflows for Bitcoin. Worse yet, Ethereum’s negative streak is even longer, with the second-largest cryptocurrency seeing its 8th straight week of outflows. Short-bitcoin investment products recorded minor inflows of $1.2 million during the week.
On a regional basis, Germany and Switzerland were the only countries with a somewhat positive sentiment, seeing minor inflows of $0.6 million and $0.8 million, respectively. Conversely, the negative investor sentiment was concentrated in the US and Brazil, where outflows totaled $4.1 million and $4.5 million, respectively.
Ripple Receives a Boost in the Latest Court Update
The CoinShares report shows that XRP was the sole crypto token that attracted positive investor sentiment last week. The reason for this is likely the latest development regarding Ripple’s legal case with the SEC.
Specifically, a non-party labeled as ‘Investment Banker Declarant’ who previously filed a declaration supporting the SEC’s probe into Ripple has now filed a motion seeking to redact his declaration. Notably, a redact motion seeks to remove certain information from the lawsuit before it becomes public.
The move has been welcomed by the crypto community, resulting in minor inflows in Ripple’s native token last week. XRP is up more than 3% in the past 24 hours as Bitcoin broke above the $17,000 resistance.
Ripple has received support from several companies in its battle against the SEC, including the crypto exchange giant Coinbase. Other firms like TapJets and I-Remit also filed their amicus briefs to support the crypto solutions provider.
This article originally appeared on The Tokenist
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