- Institutional buying of XRP has surged 266% with $1.1 million worth of XRP purchased in the last week.
- Investor confidence in XRP has soared, driven by Ripple’s legal victories and a positive outlook for the broader digital asset market.
Just when it seemed the legal battle was over, the SEC filed an appeal. However, this unexpected move hasn’t dampened institutional enthusiasm. Having surpassed the first circuit in district court, the case has moved to an appellate court, where in fact, Ripple maintains an advantageous position.
In an interesting twist of events, a recent report shows increased institutional buying of the digital asset. A Coinshare report has put on display that institutional interest has increased, with $1.1 million worth of XRP purchased last week.
This marks a substantial increase from the $0.3 million recorded the previous week, reflecting a 266% rise in buying activity. The timing coincides with Ripple and the SEC’s preparations for their appeals in the Second Circuit, suggesting that investors are betting on Ripple’s continued success in the courts.
The increased investor interest aligns with the broader market trend. In line with the “pumptober” mood digital asset investment products saw a net inflow of $407 million during the same week as investors remain bullish on an “Uptober” rally. This has been a term hitting the social platforms to describe the expected upswing in this month.
At the time of writing, XRP is swapping hands with $0.5503 marking a 4.29% and 1.91% surge in the past 24 hours and past week respectively. Additionally, XRP’s market cap has seen a 4.27% surge stopping at $31.18B. On top of that, the digital asset’s daily trading volume has seen a 64.24% stopping at $979.73M.
Adding to the momentum, XRP futures have also seen a notable increase in activity. Open interest (OI) in XRP futures climbed by over 3% in the last 24 hours, reaching a total of $750.53 million.
Ripple vs. SEC Lawsuit
Exploring the intricacies of XRP’s legal proceedings, as earlier reported the SEC recently appealed Judge Torres’ ruling that imposed a $125 million penalty on Ripple. Worth mentioning, this was surprisingly lower than the $2 billion initially proposed by the regulatory agency. Giving in a strong fight, Ripple, in turn, filed a cross-appeal.
Ripple CEO Brad Garlinghouse expressed confidence that the cross-appeal would deal a final blow to the SEC’s regulation-by-enforcement strategy under Chair Gary Gensler. Backing Ripple, the crypto community has also expressed criticism of the SEC’s actions, accusing the agency of prolonging the case unnecessarily.
Additionally, Legal experts, such as former SEC attorneys Marc Fagel and James Farrell, anticipate that the SEC’s appeals will primarily target programmatic and secondary sales of XRP. Meanwhile, crypto companies like Bitnomial have preemptively sued the SEC, challenging its classification of XRP as a security. The inconsistency in the SEC’s enforcement, especially when contrasting XRP with Ethereum (ETH) futures, has fueled further debate.
