XRP Price Explosion To Unfathomable Heights In The Offing As Uphold Exec Says Spot ETF Nigh

2024-3-14 23:37

While Bitcoin (BTC) has notched a new all-time high after a new all-time high in recent weeks, Ripple’s XRP has been lagging, still some 80% lower than its 2018 record high.

However, XRP’s fortunes could soon change with the likely arrival of spot exchange-traded funds (ETFs) amid increased development efforts in the coin’s ecosystem, according to Head of Research at Uphold Exchange Martin Hiesboeck.

XRP ETF On The Horizon?

The price of XRP snapped its losing streak on Monday when the Ripple-promoted token jumped over 25%, smashing numerous resistance barriers to register a new yearly peak above $0.74.

This increase in XRP’s value has not only attracted the attention of investors but also ignited debates around the future of the sixth-largest cryptocurrency, specifically regarding the possible launch of a U.S.-based spot exchange-traded fund.

Uphold’s head of research Martin Hiesboeck has been rather outspoken about the developments in the XRP ecosystem. Commenting on the token’s latest bullish price action, Hiesboeck attributed the upward momentum to “increased development on XRP since the lawsuit was settled”. He was referring to the regulatory clarity Ripple and XRP gained in 2023.

Hiesboeck further hinted at an incoming XRP-based ETF, positing, “We are finally seeing the fruits of increased development on XRP since the lawsuit was settled. An XRP ETP is around the corner, too. There is life in the old girl.”

Last month, Ripple CEO Brad Garlinghouse also weighed in on the possibility of an XRP ETF hitting the market. Garlinghouse revealed that the blockchain payments startup “would certainly welcome” the investment product. The executive also observed that it is inevitable that there will be numerous ETFs around different crypto assets, as investors would want to diversify their risks.

Is XRP Getting An ETF This Year?

The landmark approval of a bunch of spot BTC ETFs in January gave the XRPArmy hopes for a similar product in the future. While an XRP ETF could unleash the coin’s full potential, several factors point to a bumpy road ahead for such an investment vehicle.

Notably, an XRP ETF won’t be possible unless XRP is granted a non-security status in the United States. As you may recall, in July 2023, the court ruled that Ripple’s institutional sales of XRP violated federal securities laws, but sales on exchanges and programmatic sales did not.

Furthermore, industry pundits have recently noted a decline in optimism for a spot Ethereum (ETH) ETF, with Bloomberg’s Eric Balchunas dropping the odds of such a product launching in May to 35% due to the SEC’s silence with prospective fund issuers. That being said, an XRP ETF only seems plausible if the biggest altcoin by market cap sets a precedent for its peers.

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