CoinShares shares a weekly capital flow report of leading crypto funds for institutional investors. Notably, XRP was the big star during the first week of 2023. While big projects like bitcoins (BTC) one ethereum (ETH) had to settle for outflows, should ripple (XRP) note a small net inflow of $3 million.
1/ We were back on Monday with our Fund Flow Weekly, curated by our Research Manager @jbutterfill.
Cryptocurrency Market Sentiment This Week:
1️⃣ The market is calm
2️⃣ The XRP surprise
3️⃣ BTC sees minor outflows.All data is available in our weekly report:https://t.co/ksLelP8jjN pic.twitter.com/MJyNxpdYua
— CoinShares (@CoinSharesCo) January 9, 2023
Exit for bitcoin and ether
Surprisingly, the bitcoin and ethereum bigwigs didn’t do very well among institutional investors last week. Bitcoin funds lost about $6.5 million in capital and ether funds had to post a $3 million outflow. Trading volumes into the new year are also disappointing for now. If in 2022 it was still an average of 9 billion dollars a day, in 2023 it fell to an average of 5 billion dollars a day.
On the other hand, the year has just begun and we still have to see how it will develop in the coming period. For Ripple funds, the year has already started in a more positive way with a net of 3 million dollars. It’s unclear exactly why, but according to CoinShares, clarity on the SEC lawsuit could contribute to this.
End of XRP lawsuit
However, it remains to be seen how far Ripple can win the SEC case. At this point it seems far from clear that the crypto project will settle the matter in his favor. The SEC still believes that Ripple staged an illegal bond issue with the XRP token.
In the financial world we speak of an ‘effect’ when a financial object carries with it a certain profit expectation as a result of the efforts of the company issuing the object. In effect, this creates a kind of contract between investors and the company.
According to the SEC, this was the case with the XRP token and Ripple should never have been allowed to sell it to the public without a license. This happened anyway, meaning the company could face hefty fines.
