Institutional investors ignore bitcoin and ether and choose XRP

CoinShares shares a report every week on the capital flows of the major crypto funds for institutional investors. Notably, XRP was the big star during the first week of 2023. While large projects such as bitcoin (BTC) and ethereum (ETH) had to make do with outflows, ripple (XRP) recorded a small net inflow of $ 3 million.

Exit for bitcoin and ether

It is striking that the big boys bitcoin and ethereum did not do too well among institutional investors last week. The bitcoin funds lost about $6.5 million in capital and ether funds had to record an outflow of $3 million. Trading volumes in the new year are also disappointing for the time being. Where in 2022 they were still an average of USD 9 billion per day, in 2023 this has fallen to an average of USD 5 billion per day.

On the other hand, the year has only just begun and we have yet to see how it will develop in the coming period. For Ripple funds, the year has already started more positively with a net of $ 3 million. The exact reason for this is unclear, but according to CoinShares, the clarity regarding the lawsuit against the SEC may contribute to this.

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End of the XRP lawsuit

However, it remains to be seen to what extent Ripple can win the SEC’s lawsuit. At this point, it seems anything but clear that the crypto project will settle the matter in its favour. The SEC still believes that Ripple organized an illegal securities issue with the XRP token.

In the financial world, we speak of an ‘effect’ when a financial object carries with it a certain profit expectation as a result of the efforts of the company that issues the object. In fact, this creates a kind of contract between the investors and the company.

According to the SEC, this was the case with the XRP token and Ripple should never have been allowed to sell it to the general public without a license. That has happened anyway, which means that the company may face hefty fines.

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