XRP ETF Inevitable?
NAIROBI (CoinChapter.com) – Ripple President Monica Long believes an XRP exchange-traded fund (ETF) is inevitable and would make “a lot of sense.” Long shared her thoughts during a recent CNBC interview, highlighting the unique regulatory clarity XRP and Bitcoin enjoy in the U.S. Long’s comments followed Ripple CEO Brad Garlinghouse’s prediction that a spot XRP ETF is “inevitable.” Garlinghouse noted the potential for multiple altcoin ETFs, given investor preferences for diversified exposure.
Monica Long expects to see increasing institutional interest in the crypto space. She pointed out that sophisticated players are entering the market, leveraging Bitcoin ETFs and tokenized assets. This influx of institutional investment could further legitimize the cryptocurrency market and drive broader adoption.
Why XRP ETF Could Transform the Market
Monica Long’s endorsement of an XRP ETF underscores the growing acceptance of cryptocurrency in mainstream finance. She pointed out that XRP, consistently a top 10 asset by market cap and top 5 by daily traded volume, is well-positioned for an ETF. Long’s rationale is rooted in the regulatory clarity XRP has, making it a safer bet for institutional investors.
A Ripple ETF could attract substantial institutional investment. Institutional players have shown a growing interest in digital assets through ETFs, as seen with Bitcoin. An XRP ETF would provide a regulated and straightforward entry point for these investors, promoting broader adoption and trust in the market.
Ripple CEO says; XRP ETF comes in 2025. Source: Fox
Ripple CEO Brad Garlinghouse revealed the timeframe for an XRP ETF at Consensus 2024. In an exclusive Fox Business interview on June 4, Garlinghouse discussed the regulatory landscape of cryptocurrencies, emphasizing the SEC’s approval of Ethereum Spot ETFs and the potential introduction of an XRP ETF.
Ripple’s Strategic Stablecoin Launch Set for Late 2024
Ripple’s stablecoin project, slated for launch by the end of 2024, is another significant development. Monica Long emphasized that Ripple’s entry into the stablecoin market is driven by customer demand. Financial institutions seek more efficient global payment solutions using a US dollar stablecoin. Long stated,
“At Ripple, we have a 10-plus-year legacy of being a very trusted, compliant, secure player in the enterprise space. So, I think we’re a great candidate to bring a trusted US dollar stable to the market.”
Monica Long
Long highlighted projections that the stablecoin market could reach over $3 trillion in cumulative market cap within five years. This forecast emphasizes the strategic importance of Ripple’s upcoming stablecoin, potentially positioning it as a major player in the financial ecosystem.
However, the SEC’s recent filing targeted Ripple’s plans to launch a stablecoin, labeling it an unregistered crypto asset. Despite regulatory challenges, Long affirmed that there would still be a need for XRP even after the stablecoin launch.
Despite the SEC’s recent filing against Ripple’s stablecoin plans, labeling it an unregistered crypto asset, Long affirmed the continued need for XRP even after the stablecoin launch.
XRP Struggles Below Key EMAs
As of June 6, 2024, XRP is trading at $0.52286. The daily chart highlights XRP’s struggle to break above the 50-day and 100-day Exponential Moving Averages (EMAs), positioned at $0.53066 and $0.54514, respectively. This indicates persistent bearish sentiment in the market.
XRP/USD 1-day price chart. Source: TradingView
The chart features a descending triangle pattern, often seen as a bearish continuation pattern. The horizontal support line is around $0.50, with a descending resistance line indicating a potential breakdown. XRP needs to break above the 50-day EMA to counter this bearish outlook. Should it manage this, the next target would be the 100-day EMA, followed by the $0.5739 resistance level.
However, failure to break above the 50-day EMA could see XRP testing the lower trendline at approximately $0.50. A breakdown below this level might lead to a further decline towards the $0.48 mark.
The Relative Strength Index (RSI) currently stands at 49.27, suggesting a neutral market sentiment. An RSI reading above 50 could signal increasing bullish momentum, which might help XRP surpass its resistance of $0.77.
The post XRP ETF Inevitable? Ripple President Says It’s a “No-Brainer,” But Will the SEC Play Ball? appeared first on CoinChapter.