XRP ETF expectations drop and traders position using derivatives
Scott Johnsson, general partner at Van Buren Capital, said another reason for XRP investors' displeasure is that the chances of the SEC approving a spot XRP exchange-traded fund (ETF) are “highly desirable.” Manh”. Bloomberg ETF analyst James Seyffart shared a similar view in a Jan. 11 interview with Tony Edward of Think Crypto.
With recent events surrounding XRP and Ripple, investors can expect a bearish sentiment from top traders. However, the Long-to-Short ratio shows the opposite trend. Long-to-Short Net Ratio consolidates derivatives positions across perpetual and quarterly futures contracts, providing insight into whale positions and arbitrage desks.
Notably, top traders on OKX are now 7.2x in favor of Long, reaching a 30-day high—a significant change from the 1.6x reading on February 1. Data from Binance is less skewed, favoring Long orders at a healthy 2x, up from 1.8x on February 1. In essence, XRP whales and market makers increased their bullish positions regardless of the price bottoming out near $0.50.
Data shows that the XRP funding rate has been close to zero since January 4, signaling the need for equal leverage between Long and Short.
Ultimately, the data makes it unlikely that XRP whales and market makers are blindly adding leveraged long positions while the price continues to decline. On the positive side, there are no signs these players are about to be liquidated as the funding rate remains extremely balanced.
