Cryptocurrency investors are flocking to XRP investment products, driven by a surge in assets under management (AUM) that has skyrocketed by 127% this year alone.
The remarkable growth continues as these products marked their sixteenth consecutive week of inflows, with a recent report by CoinShares shedding light on the ongoing shift in investor sentiment towards XRP.
This surge in interest comes in the wake of regulatory developments and a pivotal court ruling, reshaping the landscape for XRP investors.
Investment products focused on the native token of the XRP Ledger, XRP, have witnessed an astounding 127% increase in assets under management so far in the current year.
As per the latest Digital Asset Fund Flows Weekly report by CoinShares, these products reported their sixteenth consecutive week of inflows, with an impressive $500,000 being invested into them.
This figure now constitutes 12% of the total assets under management of these products, highlighting the growing popularity of XRP among investors.
The surge in XRP investments can be attributed, in part, to a pivotal legal ruling that set a new trajectory for the token’s regulatory status.
Earlier this year, a crucial ruling by Judge Analisa Torres in the case brought against XRP by the U.S. Securities and Exchange Commission (SEC) provided much-needed clarity.
The ruling distinguished between sales to institutional investors and those on exchanges, emphasizing that the token itself might not be classified as a security.
This breakthrough allowed major cryptocurrency exchanges such as Coinbase, Kraken, and Gemini to relist XRP, significantly enhancing its liquidity.
While the regulatory landscape appears to have shifted in favor of XRP, recent events have underscored the ongoing challenges in the legal realm.
The SEC’s intent to file an “interlocutory appeal” against Judge Analisa Torres’ ruling on Ripple’s programmatic XRP sales highlights the complex nature of the legal battle.
The appeal aims to clarify the interpretation of certain sales and offers of XRP by Ripple, particularly those occurring over cryptocurrency trading platforms and in exchange for services.
This indicates that despite progress, regulatory uncertainties still loom over the XRP ecosystem.
Blockchain data provides additional evidence of XRP’s growing influence. The XRP Ledger has consistently recorded over 1.2 million transactions per day since the beginning of August, surpassing even Ethereum ($ETH), the second-largest network in the cryptocurrency space, which has seen 1.09 million daily transactions.
This surge in activity further solidifies XRP’s position as a robust and dynamic blockchain network.