Summary
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Growing Institutional Interest: Significant speculation surrounds a potential XRP price surge due to heightened interest from institutional investors.
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ETF Application Wave: This interest is demonstrated by over ten asset management firms (including Bitwise, Grayscale, WisdomTree) applying for XRP-based ETFs since October 2024.
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Potential ETF Impact & Favorable Ruling: Approval of these ETFs is considered a potential major catalyst, potentially absorbing liquidity and attracting large inflows (J.P. Morgan estimated $8B), supported by the SEC not appealing a favorable 2023 court ruling on XRP.
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Technical Indicators & Price Action: Concurrently, XRP’s narrowing Bollinger Bands signal potential increased volatility (often preceding upward moves), while its price recently rose to $2.21 (+7.08% in 24 hrs).
Heightened interest from institutional investors in Ripple’s XRP, currently ranked as the fourth-largest cryptocurrency by market capitalization, is fostering considerable speculation about a potential significant price upswing for the asset, according to various market commentators.
This growing institutional focus is evidenced by a wave of applications submitted by over ten asset management firms seeking approval for XRP-based exchange-traded funds (ETFs).
Wave of ETF Applications Underscores Institutional Demand
Bitwise Asset Management, a firm managing over $5 billion in assets, spearheaded the process by filing for an XRP ETF back in October 2024.
Following Bitwise’s move, numerous other prominent investment firms submitted similar applications, including names like Canary Capital, MEMX, 21Shares, WisdomTree, Coinshares, Grayscale, Teucrium, Franklin Templeton, and ProShares.
Market observers suggest that the potential approval of these XRP ETFs could act as a powerful catalyst for the digital asset’s price.
The entry of institutional capital into the XRP market via ETFs is theorized by some proponents to function like a large-scale absorption mechanism, rapidly consuming available liquidity.
Reinforcing this outlook, analysts at J.P. Morgan were previously reported in January to have projected potential long-term inflows amounting to $8 billion should XRP ETFs gain regulatory clearance.
This positive outlook has arguably been bolstered by the U.S. Securities and Exchange Commission’s decision not to pursue an appeal against the 2023 judicial ruling concerning XRP delivered by U.S. District Judge Analisa Torres.
Technical Indicator Signals Potential for Increased XRP Volatility
Concurrent with the burgeoning institutional interest, technical indicators for XRP are also presenting potentially bullish signals.
The asset’s Bollinger Bandwidth, a measure of market volatility, recently contracted to its narrowest point since October 2024.
While such tight banding can sometimes follow a market downturn, historical precedents for assets like Bitcoin and XRP show that periods of low volatility often precede significant price movements, frequently initiating upward rallies.
At the time of reporting, XRP’s value stood at $2.21 per coin, reflecting a notable increase of 7.08% within the preceding 24-hour period, potentially aligning with the positive sentiment surrounding ETF prospects and the constricting technical indicator.
Also Read: Standard Chartered Predicts XRP Market Cap to Surpass Ethereum by 2028
Standard Chartered predicts that XRP’s market capitalization will surpass Ethereum’s by the end of 2028, making it the second-largest cryptocurrency excluding stablecoins. This prediction is largely attributed to XRP’s fundamental utility as a platform for facilitating cross-border and cross-currency payments, a sector experiencing continuous growth. The approval and upcoming launch of the first US-based leveraged XRP ETF by the NYSE signals growing mainstream financial interest in XRP, despite the absence of a spot ETF. Geoffrey Kendrick, the Head of Digital Assets Research at Standard Chartered, highlighted XRP’s increasing importance in international payments amidst an evolving cryptocurrency landscape. He highlighted the sustained growth in transaction volumes within this segment of the digital asset market, which Standard Chartered anticipates will continue, further solidifying…[Read More]
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