- Institutional investments in Ripple’s XRP see a 16-week streak, as revealed by CoinShares’ data.
- XRP’s assets under management surged by 127% since the year’s commencement, with investments totaling $11.25 million in 2023 alone.
Institutional Infusion in the Digital Asset Realm
While Bitcoin often captures institutional attention in the crypto domain, XRP is steadily establishing itself as a dominant contender. According to a fresh dossier by the renowned digital assets investment entity, CoinShares, Ripple’s XRP has been on the receiving end of institutional investments for an impressive 16 consecutive weeks.
James Butterfill, CoinShares’ esteemed Head of Research, conveyed to Decrypt that since the onset of 2023, there has been a notable investment influx amounting to approximately $11.25 million into XRP. The growth trajectory is indeed impressive: the assets under XRP products’ management have catapulted by 127% since the dawn of the year.
Ripple vs. SEC: The Plot Thickens
The foundation for this burgeoning optimism among institutional investors can be traced back to the ongoing narrative between Ripple Labs and regulatory authorities. Zooming out a bit, in 2020, the U.S. Securities and Exchange Commission (SEC) presented Ripple Labs with a colossal $1.3 billion litigation. The SEC posited that Ripple had swayed its investor community by selling XRP, which they deemed as unregistered securities.
However, a recent twist manifested when a federal district judge demarcated that programmatic XRP sales to everyday investors didn’t fall under the securities’ bracket. There was a caveat: contracts worth $728 million concerning institutional sales were still in the realm of unregistered securities. Despite this distinction, the verdict resonated positively within the investor circuit and Ripple Labs.
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Post-verdict, XRP’s valuation trajectory has seen an uptick, further accentuated by Ripple’s General Counsel, Stu Alderoty, expressing optimism regarding U.S. banks reverting to Ripple’s renowned On-Demand Liquidity (ODL) offering.
Furthermore, CoinShares’ analytical report shed light on the financial landscape, highlighting institutional investors’ decision to funnel $29 million into digital asset ventures the previous week. This move, it postulates, might be influenced by the recent U.S. inflation data, which hints at a postponed rate hike this September.
Yet, while Ripple and XRP grab headlines, Bitcoin remains the behemoth. CoinShares notes that the premier cryptocurrency still magnetizes the lion’s share of institutional attention with investments approximating $27 million directed towards acclaimed funds, including luminaries like Grayscale, 3iQ, and 21 Shares.
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