- There have been inflows to XRP investment products for the third successive week, hinting that investors are more confident of Ripple’s victory.
- Another independent firm throws support for SEC in its court battle with Ripple.
According to investment data from James Butterfill, a top-level executive with Coinshares, there have recently been massive inflows into XRP-related investment products. He suggests that the inflows might be due to recent developments in the Ripple-SEC case.
The Coinshares chief wrote in the latest issue of the digital asset fund flows that institutions’ investments in XRP-related products have reached $1.1 million following the third successive week of inflows. Butterfill believes that investors’ confidence must have been bolstered by the recent events in the Ripple vs. SEC saga.
According to him, notable crypto firms such as the blockchain association and Coinbase are among the contributors to these massive inflows. Last week, Stuart Alderoty, Ripple’s General Counsel, tweeted that more than 12 entities are offering help in this matter. They all agree that the SEC was wrong in its allegations against Ripple.
Besides the XRP community, some notable names supporting Ripple include the crypto council for innovation, SpendTheBits (a mobile app for crypto), and the investor choice advocates network (a not-for-profit firm).
Nevertheless, Ripple CEO Brad Garlinghouse remarked that the court could still take months to give a summary judgment despite the overwhelming support for Ripple. The Ripple CEO predicted that a final verdict on the case could happen by June 2023.
However, there could still be a twist to this case following the recent victory by the US financial watchdog against LBRY (a blockchain-built payment and file-sharing network). Earlier in the week, a partner at leading law firm, Hogan & Hogan, tweeted that it won’t be surprising if the SEC includes the judgment from the LBRY case in its final briefing for the Ripple case.
LBRY fought the good fight but lost at summary judgment.
The Judge hung his hat largely on the fact that there was essentially no use for the tokens at the time of the sales.
I would expect this case to make its way into the SEC’s final brief in the Ripple case. https://t.co/IDlq8J4RMS
— Jeremy Hogan (@attorneyjeremy1) November 7, 2022
The lawyer commenced LBRY for their brave fight even though they eventually lost at the summary judgment. Meanwhile, Attorney John Deaton remains confident that Ripple would win this case. On Tuesday, he tweeted that his confidence in Ripple’s win possibility remains strong despite the latest ruling.
A new entity supports SEC’s Ripple allegations
In a related development, the new sports economy institute (NSEI) has filed an amicus brief at the court to support the US financial regulator’s allegations against the blockchain firm. In its argument, the NSEI claims that Ripple’s native token is a speculative tool whose basis lies in the greater fool theory.
The institute further argues that Ripple is overly critical and keeps misinterpreting the relevant parts of the Howey test. The NSEI claims that the speculative intent for holding XRP tokens far exceeds the consumptive intent. It explained that most XRP holders bought the tokens because they saw many others doing the same.
The institute further argued that a brief overview of XRP discussion on various forums indicates that most token holders don’t have any “consumptive aim” of holding the token. Instead, they hold it for speculative reasons. The NSEI also said crypto exchanges are taking advantage of this speculative intent to manipulate XRP’s price.
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