Institutional Investors Show Renewed Interest in Ripple 

Ripple (XRP), currently the fifth-largest cryptocurrency by market capitalization, has seen continuous investment from institutional players for the 16 consecutive weeks, as revealed by a report from the digital assets investment company, CoinShares, on Monday.

From the beginning of the year, assets managed for XRP-related products have witnessed a staggering 127% increase. James Butterfill, CoinShares’ Head of Research, disclosed to Decrypt that since the onset of 2023, investments totaling $11.25 million have been directed towards XRP.

This newfound enthusiasm can be attributed to the recent developments in the longstanding battle between Ripple Labs and regulatory authorities. Back in 2020, the U.S. Securities and Exchange Commission (SEC) slammed Ripple with a lawsuit worth $1.3 billion, accusing it of deceiving its investors and illicitly selling XRP as unregistered securities.

However, a significant shift came last month when a federal district judge partially ruled that XRP’s programmatic sales to everyday consumers were not to be classified as securities. The judge did, on the other hand, deem $728 million in institutional sales contracts as unregistered securities sales. Despite this, the general consensus among investors and Ripple Labs was that the ruling leaned favorably.

Following this, there’s been a notable upswing in XRP’s price, which had already been experiencing an upward trajectory this year. Stu Alderoty, Ripple’s General Counsel, expressed his anticipation for U.S. banks to revert to utilizing Ripple’s On-Demand Liquidity (ODL) offering.

In addition, CoinShares’ analysis highlighted that last week, digital asset investment products saw an influx of $29 million from institutional investors. This surge might be influenced by recent U.S. inflation data which came in slightly below expectations, hinting at a reduced likelihood of a rate increase in September.

Furthermore, Bitcoin still holds its position as the top contender for institutional focus. The report showcased that major funds dedicated to accredited investors, including prominent names like Grayscale, 3iQ, and 21 Shares, saw an inflow of $27 million.