Ripple (XRP): Institutional investors remain optimistic

A good month ago, Ripple (XRP) won an important partial victory against the U.S. Securities and Exchange Commission (SEC). Institutional investors also therefore prefer to invest in XRP for the 16th week in a row rather than realize profit-taking.

Ripple (XRP) may be pleased since mid-July to have a legal status in the U.S. secured for the time being compared to many other cryptocurrencies. Because on July 14, a mammoth case against the U.S. Securities and Exchange Commission (SEC) ended with a major partial victory for Ripple and XRP. This has apparently also encouraged institutional investors to maintain and expand their exposures towards XRP, as can be seen from a recent market report from CoinShare.

According to the report, XRP has recorded capital inflows for the 16th consecutive week. Since the beginning of the year, CoinShare counts $11 million in capital inflows from institutional investors for XRP, most recently around 0.5 million per week. However, this remains a manageable amount compared to Ripple’s market capitalization, which is currently a good $32 billion. In this respect, the 127 percent plus that CoinShare has measured for XRP under asset management since the New Year is more exciting.

The data also matches Ripple’s price curve: at the beginning of the year, XRP was still trading at $0.34; it is currently $0.61. When the ruling in the SEC proceedings became public, XRP temporarily jumped in price by almost 70 percent. Since then, the price curve of XRP has declined, but never returned to the levels of before the verdict was announced in 2023.

Ripple itself is meanwhile already drafting plans again in the U.S. to get U.S. banks to use XRP as a bridge currency for international money transfers. In parallel, it became clear a few days ago that the dispute about XRP with the SEC will go into extension. Thereby, the status of XRP as an institutional investment will play a main role.

Conclusion: Professional investors see XRP as a profit opportunity

CoinShare data shows Bitcoin (BTC) continues to be the linchpin of institutional investments in cryptocurrencies, with $456 million in capital inflows in 2023. Strikingly, Ethereum (ETH) and Binance Coin (BNB), the number two and three most capitalized cryptocurrencies, show outflows. Ripple, now back to number four by market cap, on the other hand, seems to be becoming a darling of professional investors, albeit at a moderate level in absolute terms. Whether it is therefore advisable to invest in XRP as a private retail investor? When deciding, you should do your own research and keep an eye on medium- and long-term prospects for XRP.

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