XRP Institutional Buying Soars 266% Amid Ripple Vs SEC Lawsuit Appeal

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As a seasoned researcher with years of experience in the crypto market and a keen eye for detail, I find myself intrigued by the current state of XRP. The recent surge in buying activity from institutional investors, coupled with Ripple’s legal battle against the SEC, paints an interesting picture.

Institutional investors have significantly increased their purchases of XRP, as Ripple and the U.S. Securities and Exchange Commission have decided to carry on their legal battle in the Second Appellate Court. With Ripple’s recent victory in a district court and the advantage they hold in the appellate court, investors appear optimistic about a substantial surge in XRP’s price in the near future.

Institutional Investors Buying XRP Heavily

Last week saw a substantial increase of approximately 266% in institutional purchases of XRP compared to the previous week, with investments amounting to $1.1 million versus just $0.3 million. This significant surge in buying activity was reported by CoinShares on October 14, as Ripple and the US Securities and Exchange Commission (SEC) prepared for appeals in their ongoing court case.

As an analyst, I observed a surge of $407 million in digital asset investment products during the past week, fueled by investor optimism towards an ‘uptober’ rally. This bullish sentiment aligns with the upcoming US elections. Interestingly, despite the increase in CPI and PPI inflation within the U.S., investors chose to disregard these economic indicators and instead focused on seizing the investment opportunities presented by buying the dips.

XRP price jumped more than 1% in the past 24 hours, with the price currently trading at $0.54. The 24-hour low and high are $0.525 and $0.540, respectively. Furthermore, the trading volume has increased by 45% in the last 24 hours, indicating interest among traders.

In light of significant developments surrounding XRP, the value of open interests in XRP futures contracts increased by more than 3% within the past day. Currently, this futures open interest stands at approximately 1.39 billion dollars, equivalent to $750.53 million.

Ripple Vs SEC Lawsuit Moved to Second Circuit Court

In contrast to the initial $2 billion in fines proposed by the US Securities and Exchange Commission (SEC), Judge Torres’ decision for a $125 million penalty was challenged by the SEC in the remedies phase. This week, detailed Form C and Form D filings outlining the appeal are expected. The crypto community has criticized the SEC for appealing and prolonging the ongoing case.

In response to the SEC’s unusual appeal of Judge Torres’ decision, Ripple has filed a cross-appeal, indicating their intention to challenge it. Brad Garlinghouse, Ripple’s CEO, stated that this cross-appeal will ultimately decide the SEC’s outcome and halt the regulatory-by-enforcement approach being pursued by Chairman Gary Gensler’s agency.

Experienced lawyers who previously worked at the Securities and Exchange Commission (SEC), like Marc Fagel and James Farrell, anticipate that the SEC will take legal action against programmatic sales, as well as subsequent sales, in the cryptocurrency market. The US Securities and Exchange Commission has already initiated lawsuits and investigations against crypto firms over secondary market transactions, which Judge Torres did not explicitly rule on in her significant judgment last year.

In addition, Bitnomial filed a lawsuit against the U.S. Securities and Exchange Commission because the agency considered XRP as a security despite court clarification. Furthermore, lawyer Bill Morgan challenged the SEC’s reasoning behind categorizing the futures as security-based futures contracts. He criticized the inconsistency in regulatory oversight, particularly when contrasting XRP with Ethereum (ETH), where the SEC had no issues with the futures contracts in the past.

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2024-10-14 14:56