XRP Fund Flow Soars 75% After SEC Ruling: Will the Price Follow?

Following a recent ruling from the Securities and Exchange Commission (SEC), fund flows into XRP exchange-traded products (ETPs) have surged by 75% in the past week. According to CoinShares’ latest report, the increase has resulted in an additional $700,000 invested in XRP-related products this week, up from approximately $400,000 the week before.

This boost has brought the total investment in XRP ETPs to $21 million for the year, highlighting XRP’s growing appeal among investors.

Ripple-SEC Battle Comes to an End

The rise in XRP fund flows comes in the wake of a major court decision. US District Judge Analisa Torres recently ruled that Ripple, the company behind XRP, must pay a $125 million civil penalty to settle its ongoing lawsuit with the SEC. 

The ruling effectively removes XRP’s designation as a security, which could potentially drive XRP’s price higher in the near future.

Stuart Alderoty Criticizes SEC Ruling 

In a recent interview with CBNB, Stuart Alderoty, Ripple’s Chief Legal Officer, shared his perspective on the ruling. “We’re feeling really good about it,” Alderoty said, noting that Ripple defended itself not only for its own benefit but also for the entire crypto industry.

@s_alderoty, Ripple's legal counsel, explains how they plan to move forward.

Listen closely.

pic.twitter.com/euebmAu14V

— Jim_Knox (@JimKnox123) August 9, 2024

Alderoty criticized the SEC’s approach as being anti-crypto and saw the ruling as a significant victory for the industry as a whole.

The Ripple legal chief elaborated that the court ruled XRP itself is not a security, similar to how a bar of gold is not considered a security. However, the court did find that some past sales of XRP should have been registered under securities laws due to their sophisticated packaging.

Ripple plans to pay the $125 million fine from its cash reserves and hopes that this ruling marks the start of a new chapter, leading to a more favorable regulatory environment for cryptocurrencies. With the increased fund flows and positive regulatory news, the big question remains: will XRP’s price follow this trend?