- The price of XRP has surged, re-invigorating investors with talks of an XRP ETF.
- The resolution of the SEC and Ripple lawsuit will pave the way for innovation in the XRP ecosystem.
- The approval of an XRP ETF might depend on the approval of a spot Ethereum ETF.
The XRP price has significantly jumped in recent days, breaking past resistance levels to reach a new yearly high above $0.745. This surge has invigorated investors and sparked discussions about the cryptocurrency’s future, particularly the potential launch of an exchange-traded fund (ETF).
XRP Ecosystem Booms
Analysts attribute the positive momentum to increased development within the XRP ecosystem following the resolution of a major lawsuit last year. Martin Hiesboeck, Head of Research at Uphold Exchange, believes this clarity has paved the way for further innovation.
He suggests an XRP ETF could be imminent, citing ongoing advancements like the Automated Market Maker for the XRP Ledger and the Ethereum-compatible sidechain. Despite the excitement, the path towards a US-based XRP ETF remains uncertain. Due to ongoing regulatory discussions, major asset managers like BlackRock maintain a cautious approach.
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However, industry leaders like Ripple CEO Brad Garlinghouse and Valkyrie’s Steve McClurg remain confident about the eventual arrival of an XRP ETF. They compare the situation to the early days of the stock market, where diversification was crucial for managing risk.
Expert Lowers Odds for Ethereum
While the timeline remains unclear, Garlinghouse anticipates additional ETF filings beyond Ethereum. The recent developments have even impacted expert forecasts. Bloomberg’s Eric Balchunas, for instance, has lowered the odds of a spot Ethereum ETF to 35%.
An XRP ETF might only become likely if the Ethereum market paves the way first. Internationally, the outlook for XRP-based investment vehicles appears brighter.
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Products like exchange-traded products (ETPs) are already available on the Swedish Stock Exchange and in Europe through the 21Shares Ripple XRP ETP, which tracks the cryptocurrency’s performance.
On the Flipside
- While ETPs like the 21Shares Ripple XRP ETP exist, they are not the same as ETFs.
- Even if Ripple wins the lawsuit, an XRP ETF is not guaranteed to be accepted.
Why This Matters
The potential launch of an XRP ETF could significantly increase investor exposure and legitimize XRP within the broader financial landscape. This, in turn, could influence the value proposition of other cryptocurrencies by demonstrating a growing acceptance of digital assets as investable instruments.
To learn more about the technical indicators and positive on-chain metrics that analysts are looking at for XRP, read here:
Why XRP’s Price Remains Motionless Despite Bullish Sentiment
To learn more about the impact of Ripple’s XRP escrow on the long-term value of XRP for investors, read here:
