Key Requirements For Spot XRP ETF Approval Revealed Amidst 4500% Price Surge Target
January 27 2024 - 1:00PM
NEWSBTC
Following Bitcoin’s spot exchange-traded fund (ETF) approval on
January 11, market speculation has grown around the possibility of
similar investment vehicles for major cryptocurrencies, including a
spot XRP ETF. However, certain requirements and regulatory
considerations must be met before such a development can occur.
Regulatory Prerequisites For Spot XRP ETF FOX reporter Eleanor
Terret clarifies the matter, stating that launching an XRP spot ETF
would first require the establishment of a futures ETF. In
the case of Bitcoin, the approval of spot ETFs was conditional upon
the Securities and Exchange Commission (SEC) concluding that the
Chicago Mercantile Exchange (CME) Bitcoin futures market provided
sufficient surveillance against fraud and manipulation.
Terret suggests that for XRP to have a spot ETF, a futures ETF must
first be established, marking a step in the right direction.
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expert James Seyffart shares a similar sentiment, stating that he
does not anticipate an XRP ETF launching this year. Seyffart cites
the ongoing SEC case against Ripple as a factor influencing his
stance, suggesting that an XRP ETF is more likely to emerge once
the regulatory matter is resolved. Seyffart adds that XRP
futures trading on a regulated platform like the Chicago Mercantile
Exchange would be a prerequisite for the SEC to consider any
applications for a spot XRP ETF. Seyffart hints that an XRP futures
ETF could also be advantageous in this context. The SEC has
maintained a cautious approach towards spot ETFs involving crypto
assets due to concerns about potential market manipulation.
Seyffart emphasizes that the availability of XRP futures trading on
a regulated platform, such as the CME, would provide a favorable
framework for the SEC’s consideration of a spot XRP ETF, especially
given previous court rulings highlighting the correlation between
futures and spot markets. Amidst the ongoing speculation,
blockchain firm Ripple seems to be preparing for potential
involvement in the ETF space. A recent job advertisement
posted on Ripple’s website reveals their search for a Senior
Manager in business Development, with a focus on institutional
decentralized finance (DeFi). The role includes spearheading
cryptocurrency-related ETF initiatives with internal trading teams
and relevant partners. XRP’s Future Potential – From $0.5299 To
$27? Crypto market analyst EGRAG crypto has conducted a
comprehensive price analysis of the XRP token. Despite peaking in
2023, when the price reached a high of $0.9376 on July 13, the
token has retraced more than 15% since the start of 2024 to a
current trading price of $0.5299. However, according to EGRAG, the
21 Exponential Moving Average (EMA) on the monthly time frame is a
significant indicator for assessing XRP’s price movement. The
analysis focuses on three price levels: $3.5, $6.5, and $27. Based
on previous instances (labeled A, B, and C), EGRAG extrapolates
potential future price movements using the same percentage
increases observed in the past. The first potential scenario is a
significant price surge to $27, representing a massive 4500%
increase. This prediction is based on a similar percentage move
observed in the past (from previous instance A), seen in the chart
above. The second scenario suggests a more conservative
projection, with XRP potentially experiencing a solid 1000%
increase to $6.5. This projection is based on historical patterns
observed in previous instance B. In the third scenario, EGRAG
anticipates a significant 500% rise in XRP’s price, reaching $3.5.
Based on previous instance C, this projection indicates a
significant upward movement for the token. Related Reading:
How to Buy, Sell, and Trade ERC-20 Tokens on the Ethereum Network
Whether the XRP token can successfully surpass the upper resistance
levels that have impeded its rise to the $0.600 mark since late
December remains to be seen. Additionally, the market eagerly
awaits a catalyst that could prompt a breakthrough in XRP’s
seven-month downtrend structure, potentially resulting in a price
surge above $0.700. Featured image from Shutterstock, chart from
TradingView.com
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