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- The report states that the investment community is increasingly confident that the improved clarity on Ripple’s court battle with the SEC would positively impact XRP’s price.
- Meanwhile, Ripple wants the court to strike out one of the SEC’s expert testimonies (SEC expert 2), including its exhibits.
One of the top digital asset managers has discovered that many institutional investors are confident of a victory for Ripple Labs in its court battle with the US Securities and Exchange Commission (SEC). According to the newest Coinshares’ weekly report on crypto fund flows, many institutional investors have started accumulating large volumes of XRP tokens even though there has been intense selling pressure on most of the top digital assets.
The report revealed that these large-scale investors bought XRP tokens worth $3 million. The SEC claims that Ripple was selling its XRP tokens without registering the token with the appropriate authorities and that the XRP tokens are securities. However, the asset manager’s study reveals that many investors are confident that the SEC has no valid proof to support its claims.
A positive impact on XRP’s price
The report states that the investment community is increasingly confident that the improved clarity on Ripple’s court battle with the SEC would positively impact XRP’s price. Nevertheless, there were massive outflows on crypto asset managers’ investment products this past week, a trend that hasn’t stopped since the last week of last month.
The Coinshares report read, “this past week, total outflows from crypto investment products was $9.7 million, which further proves the negative sentiment concerning these products isn’t over despite starting three weeks ago.” Investment products for the number one digital asset (BTC) recorded the highest outflows. According to the report, there was $6.5 million worth of outflows for BTC alone.
Thus, indicating negative investors bias at the start of 2023. By comparison, there was $3.1 million worth of outflows from Ethereum investment products. These ETH investment products outflows are happening for the eighth successive week.
Also, there were $4.5 million in outflows from multi-crypto investment products. These are investment products that comprise varying cryptocurrencies. On the contrary, there were inflows worth $0.2 million for Litecoin (LTC) and Binance Coin (BNB) investment products.
Ripple files motion to remove one SEC expert testimony
Meanwhile, Ripple wants the court to strike out one of the SEC’s expert testimonies (SEC Expert 2), including its exhibits. Ripple made the request after the expert failed to confirm or deny that Ripple was selling unregistered XRP tokens as securities. The blockchain firm further said that the SEC expert’s explanation of the 1934 SEC Act does not correlate with the case.
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Ripple added that the expert has little experience with digital assets and failed to analyze the material disclosures for XRP purchasers. The last point is essential since it is the basis for the materiality analysis under the supreme court law. Similarly, the US financial watchdog has filed a motion to exclude ten Ripple expert testimonies, noting that the testimonies did not pass the three main criteria of the Howey test.
The SEC wants to remove four Ripple expert testimonies: Carol Osler, Professor Alan Schwartz, Allen Ferrel, and Peter Adriaens. For instance, the SEC wants the removal of Schwartz’s testimony due to contact interpretation which the regulator deems inappropriate.
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