According to investment statistics compiled by CoinShares’ head of research James Butterfill, recent developments in the Ripple vs. Securities and Exchange Commission (SEC) lawsuit appear to have reinforced investor confidence in XRP-tied investment products.
Butterfill reported on its most recent Digital Asset Fund Flows on November 7 that institutional investors have put $1.1 million into XRP investment products for the third week in a row.
Butterfill said that the numbers show that “investors are getting more confident as the SEC’s case against Ripple looks more and more weak.”
Ripple Labs has been gaining traction in the crypto market as of late, with backing from major players like Coinbase and the Blockchain Association.
On November 4, Ripple General Counsel Stuart Alderoty took to Twitter to inform his 89,000 followers that “a dozen independent voices” – companies, developers, exchanges, public interest groups, trade associations, and retail holders – were willing to assist him in explaining to the SEC “how dangerously wrong the SEC is.”
In addition to the XRP “decentralized community,” other organizations that back Ripple include the NGO Investor Choice Advocates Network, the crypto mobile app SpendTheBits, and the Crypto Council for Innovation.
Twelve separate organizations have come forward to offer legal support for Ripple.
Even though both sides want a summary judgment and this support, Ripple CEO Brad Garlinghouse told people at DC Fintech Week on October 11 that the lawsuit could last for months.
Garlinghouse admits that this is just a guess, but he thinks that the lawsuit might be over by the first half of 2023.
Similar complications may arise in the Ripple case as a result of a recent court ruling in favor of the SEC against LBRY, a blockchain-based file-sharing and payment network.
In a tweet to his 238,000 followers, Hogan & Hogan partner Jeremy Hogan said he anticipates his case’s findings will “make their way into the SEC’s final brief in the Ripple case.”
John Deaton, Ripple’s crypto lawyer, seems optimistic that the company will prevail in court.
Deaton wrote, “The current ruling doesn’t undermine my confidence AT ALL” in a tweet, teasing a longer explanation for his 224,000 followers on November 8.