The crypto investment landscape has seen a big shift this week. Overall, investors have become less optimistic, to say the least, leading to an outflow of $528 million from digital asset exchange-traded products (ETPs).
On the other hand, XRP-focused investment products have been a notable exception, attracting $400,000 in new capital, according to CoinShares. This is another week in a row that XRP has seen inflows, showing that more investors are taking an interest in the digital asset. Since the beginning of the year, XRP ETPs have attracted a total of $21 million in investment.
Ripple vs. SEC
The renewed investor interest in XRP coincides with the ongoing legal battle between Ripple and the SEC. Many market watchers have said the current inflow trend is similar to what it was before a major court ruling in favor of XRP last year.
Prior to the ruling, there was a continuous surge in investment in the XRP ETP, similar to what we are seeing now. After the good news broke, XRP jumped 100% in a single day.
There are no guarantees of such a surge, but the current influx of capital into the XRP ETP suggests that some investors are positioning themselves for a potential positive outcome in Ripple’s case. If there is a quick resolution, especially in Ripple’s favor, it could be the start of another big rally for XRP.
