As a seasoned researcher with years of experience delving into the intricacies of the cryptocurrency market, I can’t help but feel a sense of anticipation when it comes to the potential XRP ETF. The recent launch of Grayscale’s Ripple Trust is indeed an exciting development that could potentially pave the way for an XRP-backed ETF.
On Thursday, a well-known manager of digital currency assets announced the debut of a new fund that follows the fluctuations in value of Ripple‘s original token, XRP.
Based on its past practice of transforming Bitcoin and Ethereum Trusts into exchange-traded funds (ETFs), speculation surfaces as to whether this new product could propel Ripple onto a path towards creating its own exchange-traded fund.
XRP ETF Coming Soon?
As a researcher, I’ve noticed an instant response to the XRP market following Grayscale’s announcement. In just minutes, the price surged from approximately $0.54 to nearly $0.59, reaching a multi-week high. After a brief dip, XRP currently stands at $0.58, marking an impressive 10% increase over the past week. Past instances of misinformation have demonstrated that an ETF announcement could significantly influence its price fluctuations.
The top brass at the company, including CEO Brad Garlinghouse, have been firm in their belief that XRP will eventually have its own Exchange-Traded Fund (ETF). They made these statements even amidst Ripple’s ongoing legal dispute with the U.S. agency responsible for approving or rejecting ETFs.
Consequently, the ongoing dispute between Ripple and the SEC is approaching resolution following a court order imposing a $125 million penalty on Ripple. This outcome, viewed as a significant victory for the industry, was unexpected as the SEC had originally aimed for billions in penalties initially.
Grayscale’s past exhibits some encouraging indicators as well. Previously, they managed the two biggest private funds focused on Bitcoin (BTC) and Exchange-Traded Funds (ETF), both of which were transformed into spot ETFs during the current year.
In other words, should the SEC vs Ripple lawsuit reach a resolution and Grayscale’s background be considered, this could pave the way for an XRP Exchange-Traded Fund (ETF) more easily, particularly if there’s a significant shift in the U.S. political landscape.
XRP’s Benefits
As an analyst at Bitget Research, I expressed to CryptoPotato that the launch of Grayscale’s Ripple Trust is expected to significantly increase market confidence in XRP. This is primarily due to the fact that Grayscale’s investment products are predominantly favored by institutional investors who seek regulated investment opportunities. I highlighted several advantages for XRP stemming from this engagement, including:
Enhanced Capital Investment: Launching a trust product could encourage more institutional investment in XRP, thereby escalating its market worth and promoting price increase.
Regarding the progress of XRP-based ETFs, Lee pointed out that a definite timetable hasn’t been established just yet. Yet, he emphasized that Grayscale’s investment trust products are typically viewed as forerunners for future ETFs.
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2024-09-14 08:44