For the lawsuit between Ripple and the SEC, billionaire investors are betting on XRP against the SEC. Investors seem increasingly confident that increased clarity in Ripple’s battle with the SEC will positively impact the altcoin price. Meanwhile, Ripple is asking the court to include one of the SEC’s expert statements and those on display.
Bigs are playing Ripple in the SEC battle with Ripple
Coinshares says many institutional investors are confident of a victory for Ripple Labs in the court battle with the SEC. According to Coinshares’ weekly report on crypto fund flows, many institutional investors have started accumulating massive amounts of XRP despite heavy selling on many of the biggest crypto assets.
Coinshares’ report states that these large-scale investors have purchased $3 million worth of XRP tokens. Meanwhile, as you follow on Kriptokoin.com, the SEC claims that Ripple sells XRP tokens without registering them with the authorities and that XRP tokens are securities. However, research from Coinshares shows that many investors are confident that the SEC has no valid evidence to support their claims.
A positive impact on the altcoin price is expected
The Coinshares report states that institutional investors are increasingly confident that increasing clarity in Ripple’s court battle with the SEC will positively impact the price of XRP. That said, there have been major breakthroughs in the investment products of crypto asset managers over the past week. Also, this is a trend that hasn’t stopped since the last week of last month. Experts underline the following points in the report:
Last week, the total outflow from crypto investment products was $9.7 million. This further proves that the negative thinking about these products did not end even though it started three weeks ago.
Investment products recorded the highest outflows for the leading crypto Bitcoin (BTC). According to the report, there was $6.5 million out of Bitcoin investment products alone. This shows the negative bias of investors at the beginning of 2023. In addition, there was an outflow of $ 3.1 million from the leading altcoin Ethereum investment products. Meanwhile, it should be noted that the outflows in ETH investment products continued for the eighth consecutive week. Additionally, there was $4.5 million outflow from multi-asset crypto investment products. These are investment products that include various cryptocurrencies. In contrast, there was an inflow of $ 0.2 million in Litecoin (LTC) and Binance Coin (BNB) investment products.
Ripple has filed to remove an SEC expert statement
Meanwhile, Ripple is asking the court to drop one of the SEC’s expert statements (SEC Expert 2), including those on display. Ripple made the request after the expert failed to confirm or deny that Ripple is selling unregistered XRP tokens as securities. Ripple further states that the SEC expert’s statement regarding the 1934 SEC Act is not relevant to the case.
Ripple adds that the expert has little experience with crypto assets and is unable to analyze key disclosures for XRP buyers. This issue is important as it forms the basis of the materiality analysis within the scope of Supreme Court law. Similarly, the US financial watchdog made a request to exclude ten Ripple expert statements, stating that the statements did not pass the three main criteria of the Howey test. The SEC wants to remove four Ripple expert statements: Carol Osler, Professor Alan Schwartz, Allen Ferrel, and Peter Adriaens. For example, the SEC wants Schwartz’s testimony removed because of the contacted comment that the regulator deems inappropriate.
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