XRPs Moment Has Arrived: Dual Filing Sparks Frenzy
- Bitwises dual filings for an XRP ETF and ETP have generated significant buzz in the crypto market.
- Despite negative market sentiment, the altcoin saw increased whale activity and a surge in transaction volume.
- The SECs ongoing legal battle with Ripple could influence the future of XRP-based products and the broader crypto market.
Bitwises recent filing for an XRP ETF and subsequent announcement for an ETP gained significant traction in the cryptocurrency market. With the potential for increased regulatory flexibility and a surge in the tokens price, investors are eagerly awaiting the outcome of these groundbreaking moves.
On Sept. 30, the prominent asset manager applied for an XRP exchange-traded fund (ETF) through its agent, CSC Delaware Trust Company. While the filing could be part of early-stage preparation, it has sparked hopes for a spot ETF amidst regulatory uncertainty. Notably, its ETP (Exchange-Traded Product) filing the next day is seen as a strategic move to navigate the challenges ETFs face, increasing its chances of an SEC approval later this year or early 2025.
This could be why the market response to this news was mixed, marked by initial excitement and a huge social volume spike. Santiments social data revealed a spike in XRP transaction volume, reaching an 8-month high of $2.39 billion shortly after the filings. In contrast, the tokens 30-day MVRV (average returns of XRP traders active in the last 30 days) stood at -9.2%, marking the lowest point in two months.
Historically, such negative sentiment and low returns can present an opportunity zone, where the market is under pressure but risk is relatively limited. Here, savvy investors look to accumulate, anticipating a rebound once the negative sentiment wanes.
Whale Activity Suggests Bullish Sentiment for XRP
This is evidenced by 145 whale transactions that exceeded $1 million in value on October 1, a notable 6-month high. Such transactions by high-profile investors frequently precede market moves, providing valuable insights for small-scale investors.
Price-wise, the initial frenzy triggered a price surge in XRP, but considering what happened post Bitcoin and Ethereum ETFs, this rally could be temporary. Potential factors influencing the price trajectory could be post-announcement price correction, delays in SEC approval, or a mismatch between investor expectations and actual adoption rates, etc.
The filing also comes at a time when the SEC issued a notice appealing the 2023 court ruling on XRPs legal status. Ripples ongoing legal battle with the SEC, which began in 2020, could significantly impact the regulatory landscape for products like this ETP, depending on the outcome of any appeals or future rulings.
Read more: https://www.tronweekly.com/xrp-dual-filing-sparks-frenzy/
Text source: TronWeekly
