Recent news surrounding Ripple’s legal battle with SEC sparks surge of fund flows into XRP
Outflows from digital asset investment products have continued for the fifth consecutive week, reaching a total of $232 million, reports CoinShares. However, amid this negative trend, XRP has shown resilience by recording positive inflows. In the past week alone, XRP witnessed inflows of over $200,000, contributing to a cumulative inflow of $3 million since the beginning of the year. This places XRP among the top three cryptocurrencies in terms of inflow value, alongside Cardano (ADA) and Solana (SOL).
The increase in traditional investors’ funds flowing into XRP can be attributed to the positive developments surrounding the ongoing lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple, the crypto company associated with XRP. This legal battle will determine whether XRP should be classified as a security.
An important development that favored XRP was the court’s denial of the SEC’s request to seal the emails exchanged by former SEC official William Hinman. These emails are believed to contain crucial information that could shed light on any potential conspiracy against XRP and reveal the true sentiments of SEC officials toward the cryptocurrency at that time.
Furthermore, Ripple made significant announcements during this period. It unveiled its own Central Bank Digital Currency (CBDC) platform, which showcases its commitment to innovation in the digital currency space. Additionally, Ripple joined forces with the Hong Kong Monetary Authority to participate in an initiative aimed at creating a digital currency for the special administrative region of China.