'Astonishing' XRP Surge
Driven by Regulatory Hopes,
ETF Speculation:
Analysts
'Astonishing' XRP Surge Driven by Regulatory Hopes, ETF Speculation:
Analysts
Whether it’s SEC Chair Gary Gensler’s departure or ETF speculation, analysts
see several post-election factors behind XRP’s spike.
By André Beganski
Dec 2, 2024 Dec 2, 2024
5 min read
XRP. Image: Shutterstock
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As the price of XRP surged to a fresh seven-year high mark Monday , analysts
told Decrypt that the asset’s stunning ascent is being driven by a series of
post-election factors, ranging from renewed regulatory hopes to the potential
for XRP-centric investment• Экономика » Финансы » Инвестиции products.
Since Election Day last month, the token stewarded by Ripple Labs has been one
of the crypto market• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта’s best performers, outpacing Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin and Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum’s
relative gains. Since November 5, for example, the price of XRP has more than
quintupled, rising 430% to $2.67 from $0.50.
Whether it’s WisdomTree or 21Shares , several asset managers have recently
filed for products that would give traditional investors exposure to the spot
price of XRP. While the development could broaden investors’ access to the
cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта in America, similar products already exist outside the U.S• Соединённые Штаты Америки (США). and
have recently notched notable inflows, per CoinShares.
The European fund manager reported Monday that digital asset products for XRP
have seen $95 million in inflows over the past week. Representing 67% of total
inflows into such products this year, the performance pushed investors’
year-to-date allocations to XRP past $141 million.
CoinShares Head of Research James Butterfill wrote Monday that traders are
likely speculating on the approval of an exchange-traded product for XRP, a
development in the U.S• Соединённые Штаты Америки (США). that Ripple CEO Brad Garlinghouse described as "
inevitable " in October.
“We believe [XRP’s record weekly inflows] is due to hype surrounding the
potential for a U.S• Соединённые Штаты Америки (США). ETF,” Butterfill wrote, pointing to last week’s $95
million in allocations to XRP products.
Launched in 2013, XRP is the native asset of Ripple Network, a payments system
designed for international money transfers and currency exchanges. Fox• Объект бренды » Бренды на f » Fox
Business• Экономика » Бизнес reported last week that the New York• Соединённые Штаты Америки (США) » Административные единицы США » Административное деление США » Нью-Джерси » Нью-Йорк
• Соединённые Штаты Америки (США) » Населенные пункты США » Города США » Города штата Нью-Йорк » Нью-Йорк Department of Financial Services• Экономика » Финансы » Финансовые услуги
• Сфера услуг » Финансовые услуги
is expected to approve a stablecoin issued by the fintech firm on the
longstanding network.
While XRP, the token, operates independently of Ripple’s payment and
settlement• Экономика » Финансы » Финансовый рынок » Рынок ценных бумаг » Ценные бумаги » Расчеты по сделкам products, Sidney Powell, co-founder and CEO of Maple Finance• Экономика » Финансы » Финансовый рынок » Рынок ценных бумаг » Ценные бумаги » Расчеты по сделкам, told
Decrypt that the cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта is benefiting from Ripple’s “very strong brand
recognition” in the crypto space.
“I think it has a lot of legacy value because of the length of time that
it's been around,” Powell said of XRP. “It's obviously a very
well-established cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта, and Ripple itself is a very well-established
business• Экономика » Бизнес.”
Based in Miami, Powell described a recent Ripple conference as distinct
compared to other crypto events he’s attended. At the conference, dubbed
Ripple Swell , Powell observed a notable number of institutional participants,
ranging from investment• Экономика » Финансы » Инвестиции to commercial banks, he said.
According to Jake O., an OTC trader at the market maker• Экономика » Финансы » Инвестиции » Маркетмейкер Wintermute, XRP’s jump
in price over the past week is comparable to Iota and Hedera’s subsequent
rise. Within the past seven days, both coins have increased 66% to $0.38 and
116% to $0.29 in value, respectively.
Becoming the third-largest digital asset by market cap this weekend,
Ostrovskis attributed XRP’s recent strength to traders navigating the crypto
market• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта on their own accord. “The revival of retail shows no signs of slowing,”
Ostrovskis wrote in reference to XRP’s jump Monday.
“The rise in interest surrounding XRP coincided with the jump in Coinbase and
Robinhood's App Store ranking ,” the Wintermute trader added in a
statement. “This is indicative of retail driving the initial move, although,
as volume and liquidity picked up, we've seen an increasing number of
institutional traders chase momentum and volatility in the asset.”
Meanwhile, XRP was the third-most-traded digital asset Monday, only behind
Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin and the stablecoin Tether• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Tether , according to CoinGecko . With over $56
billion in XRP trading hands over the past day, the cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта had
surpassed Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum and Dogecoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Dogecoin in terms of volume.
Four years ago, Ripple was sued by the Securities and Exchange Commission
(SEC), which accused the firm of violating its rules by allegedly selling $1.3
billion worth of XRP as an unregistered security. Though a federal judge later
found that XRP is “not necessarily a security on its face,” the SEC has
appealed the ruling .
When SEC Chair Gary Gensler announced that he would resign when
President• Соединённые Штаты Америки (США) » Государственное устройство США » Президент США
• Соединённые Штаты Америки (США) » Политика США » Политики США » Президент США
• Политика » Политика США » Политики США » Президент США
• Государство » Государственное устройство США » Президент США-elect Donald Trump• Объект человек » Персоналии по алфавиту » Персоналии на Тр » Трамп, Дональд takes office next year, the development was
widely viewed as a positive for the crypto industry, which has been subject to
an aggressive crackdown under Gensler’s leadership.
Among digital assets that are expected to benefit from a potential shift in
the SEC’s regulatory approach, Nick Cowan, CEO of asset manager VLRM, told
Decrypt that XRP’s “astonishing” rally has been driven in part by renewed
regulatory hopes.
“XRP has rallied an astonishing 400%, helped most likely by growing sentiment
that the SEC’s legal battles may be coming to an end, along with Gensler’s
announcement that he’ll be leaving the SEC on January 20th,” Cowan said in a
statement.
Edited by Andrew Hayward
Editor's note: This story was updated after publication to include
another comment from Wintermute OTC Trader Jake O.
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