Cryptocurrency investment products focusing on the native token of the XRP Ledger, $XRP, have seen their assets under management rise 127% so far this year, and reported their sixteenth consecutive week of inflows last week, with $500,000 being invested in them.
According to CoinShares’ latest Digital Asset Fund Flows Weekly report, the figure represents 12% of these products’ assets under management. Investors have increased their bets on XRP after earlier this year, a recent ruling from Judge Analisa Torres in the case the U.S. Securities and Exchange Commission (SEC) brought against XRP differentiating between sales to institutional investors and on exchanges, noting the token itself isn’t necessarily a security.
The ruling saw a number of cryptocurrency exchanges including Coinbase, Kraken, and Gemini relist the token, significantly boosting its liquidity. Earlier this week, however, the SEC revealed its intent to file an “interlocutory appeal” against Judge Analisa Torres’ recent ruling on Ripple’s programmatic XRP sales.
The SEC is particularly keen to clarify the court’s interpretation of whether certain sales and offers of XRP by Ripple, especially over cryptocurrency trading platforms and in exchange for services, fell within the parameters defined by the Howey test, a standard for defining securities.
Notably, blockchain data shows that the XRP Ledger has been seeing over 1.2 million transactions per day since the beginning of August, surpassing the number of daily transactions seen on the second most popular network in the cryptocurrency space, Ethereum ($ETH), which has recorded 1.09 million a day.
As CryptoGlobe reported, XRP has seen its market capitalization drop by nearly $10 billion from its peak this year.
According to CoinShares’ report, last week digital asset investment products saw $29 million in inflows, ending a three-week outflow streak. Bitcoin-focused investment products saw $27 million of inflows, while Ethereum-focus products saw $2.5 million of inflows.
Featured image via Unsplash.
