Cryptocurrency investment products focusing on XRP see significant growth
Cryptocurrency investment products that focus on XRP, the native token of the XRP Ledger, have experienced a 127% increase in assets under management this year. This trend continued last week with $500,000 being invested in these products, marking their sixteenth consecutive week of inflows. This represents 12% of the products’ total assets under management.
Main breakdowns:
- XRP investments have risen due to a recent ruling that differentiates XRP sales to institutional investors from those on exchanges, stating that XRP is not necessarily a security.
- Cryptocurrency exchanges such as Coinbase, Kraken, and Gemini have relisted XRP, increasing its liquidity.
- The SEC intends to file an appeal against the ruling, seeking clarification on whether certain sales and offers of XRP by Ripple fall within the definition of securities.
- XRP Ledger has been experiencing over 1.2 million transactions per day since August, surpassing Ethereum.
- Last week, digital asset investment products saw $29 million in inflows, with Bitcoin-focused products receiving the majority.
Hot Take:
The growth and increased investments in XRP-focused cryptocurrency products demonstrate the growing confidence in XRP as a valuable asset. The recent ruling and relisting by major exchanges have boosted its appeal to investors. However, the SEC’s intent to appeal raises questions about the regulatory future of XRP. Overall, the XRP Ledger’s transaction volume highlights its potential as a viable cryptocurrency network.
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