The Head of Research at a prominent digital assets management firm has highlighted a consistent trend of substantial investments being made in XRP by major financial players.
In a recent discussion on the Wolf of All Streets podcast, James Butterfill, the Head of Research at CoinShares, responsible for crafting the firm’s weekly flows reports, revealed that institutional entities have sustained significant investment activities in XRP throughout the course of this year.
As of the current time, XRP holds the position of the fifth-largest cryptocurrency by market capitalization. It faced legal action from the U.S. Securities and Exchange Commission (SEC) in November 2020, as the SEC alleged that Ripple Labs had unlawfully sold XRP in the form of an unregistered security.
Following an extensive legal process, the courts ruled against certain aspects of the SEC’s claims earlier this year. This verdict established that Ripple’s automated open-market sales of XRP should not be categorized as securities offerings, which contradicted the SEC’s stance.
The price of XRP has displayed fluctuations since the legal verdict. Nonetheless, Butterfill observed a consistent pattern of major institutional players entering the XRP market this year.
“Undoubtedly, in my opinion, with the varying judgments we’ve witnessed, investors have been steadily increasing their XRP holdings week after week. With only a few instances of outflows, each week this year has witnessed inflows into XRP. This trend is remarkably advantageous for XRP’s outlook.”
This situation underscores the importance of regulatory clarity in influencing investor sentiment. Butterfill commented, “It’s evident that when regulatory matters are clearly defined, investor support begins to materialize.”
Across various surveys conducted, regulatory concerns consistently emerge as a primary focus for cryptocurrency investors. This regulatory ambiguity has led to hesitancy and uncertainty among investors. “Until we achieve regulatory clarity,” Butterfill noted, “we can anticipate continued wavering and cautious investor behavior.”
Presently, XRP is valued at $0.62, experiencing a 1% decrease in value over the last 24 hours.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.