XRP Surges as Institutions Bet on SEC Lawsuit Resolution

XRP, the native cryptocurrency of Ripple, has seen a significant influx of institutional investments since November, totaling $819 million, according to a report by CoinShares. This surge in interest comes as investors hope that the U.S. Securities and Exchange Commission (SEC) will drop its ongoing lawsuit against Ripple.

CoinShares' latest Digital Asset Fund Flows Weekly Report indicates that digital asset investment products experienced outflows totaling $508 million last week, bringing the last two weeks of outflows to $924 million. This follows an 18-week run where investment products saw inflows totaling $29 billion. The report suggests that investors are exercising caution due to uncertainty around trade tariffs, inflation, and monetary policy following the U.S. Presidential inauguration.

Despite the overall outflows, XRP products saw the most significant inflows of any crypto product, including Bitcoin (BTC). While BTC products suffered $571 million in outflows, XRP products raked in $38.3 million in inflows. XRP has now seen $819 million of inflows since mid-November 2021, reflecting investor hopes that the SEC will drop its lawsuit against Ripple. Solana, Ethereum, and Sui followed with inflows of $8.9 million, $3.7 million, and $1.47 million, respectively.

Regionally, the US led all regions in outflows at $560 million. Germany and Switzerland led all regions in inflows with $30.5 million and $15.8 million in inflows, respectively.

The SEC's lawsuit against Ripple, which alleges that XRP is a security, has been ongoing since December 2020. Ripple has maintained that XRP is not a security and has been fighting the lawsuit. The outcome of the lawsuit could have significant implications for the cryptocurrency industry, as it may set a precedent for how the SEC regulates other cryptocurrencies.

As investors await the outcome of the SEC lawsuit, XRP has seen a significant increase in institutional interest. This influx of investment could help drive further adoption and growth for the cryptocurrency. However, it is essential for investors to do their due diligence and carefully consider the risks associated with investing in cryptocurrencies.