A new report by Coinshares revealed that XRP did not attract any funds inflows or outflows as of 11 Nov 2022. This is in stark contrast to the over $1 million in investment funds received, the week prior.
Even though there are reservations regarding XRP, investors are starting to get more interested in the cryptocurrency market post-FTX collapse.
According to the CoinShares report, inflows into digital asset investment products witnessed the largest inflows for 14 weeks totaling $42 million as a result of the FTX/Alameda implosion.
With inflows totaling $19 million, Bitcoin continues to occupy the top spot. The greatest weekly outflow of $32 million from blockchain equities since May 2022 suggests investors are opting for safety options.
As traders continue to exhibit caution for XRP-related investment products, proponents are hoping for a positive outcome in the Ripple/SEC case despite a “setback” recently.
A New Hampshire court contended that LBRY, a decentralized digital content, and payment network offered its native token LBC as security and that the Fair Notice Defense failed, TronWeekly reported.
The Court found “no reasonable trier of fact could reject the SEC’s contention that LBRY offered LBC as a security, and LBRY does not have a triable defense that it lacked fair notice, the SEC is entitled to judgment. The SEC’s Motion for Summary Judgment is granted.”
Given the striking similarities with the SEC vs Ripple lawsuit, the decision has raised fears in the larger cryptocurrency industry, that a similar decision may be adopted in the latter case.
More Bad News For XRP?
The SEC has insisted that Ripple’s XRP tokens are securities and that it was unlawful to sell $1.3 billion worth of XRP to the general public, much like it did with LBRY.
In response, Ripple and two of its top executives have denied those assertions, claiming that the regulator failed to adequately notify them of the wrongdoing committed by Ripple Labs.
The blockchain community has been supporting Ripple since the lawsuit was filed in 2020, with more than a dozen organizations filing amicus curiae motions in its favor.
The regulator has insisted that “most” cryptocurrencies are securities, despite the fact that the majority of Ripple supporters have said that securities regulations have been unfairly applied to uncertainty for the whole industry.