- Against the pessimism that trailed XRP ETF discussions earlier, Canary Capital has re-ignited hope for the product.
- In the long run, XRP may benefit in terms of price if this product goes live.
Market experts continue to weigh in on the prospect of an XRP Exchange-Traded Fund (ETF) in the United States. Speculation regarding an XRP ETF approval became widespread after spot Bitcoin and Ethereum ETF products debuted in the US market.
Canary Capital Ignites XRP ETF Launch
Despite the uncertainty, Canary Capital ignited the latest buzz and optimism surrounding an XRP ETF launch.
As CNF discussed, Canary Capital, a relatively new crypto investment firm, filed for an XRP ETF with the US Securities and Exchange Commission (SEC). According to a CNF report, the firm’s filing follows a similar move made by asset manager Bitwise last week.
One of the market experts lending a voice to the XRP ETF launch discourse is ETF Store President Nate Geraci. Geraci expressed optimism, predicting that approval is likely.
“Approval is a matter of when, not if,” says Geraci.
However, he emphasized that an XRP ETF approval largely depends on the US political environment. Geraci believes a US President or SEC administration change might be critical for XRP’s ETF progress.
The crypto community has become more critical of SEC Chair Gary Gensler, with many perceiving his regulatory efforts as excessive. On the other hand, former US President Donald Trump continues to garner attention for his renewed focus on crypto. Some investors hope his possible return to office will spur innovation in digital assets.
However, other investors are worried that the SEC’s recent appeal in its case with Ripple could prolong the approvals of XRP ETFs. In an earlier update CNF covered, Ripple CLO Stuart Alderoty hinted at a possible cross-appeal, adding to market uncertainties.
Still, Ripple CEO Brad Garlinghouse and pro-XRP lawyer Bill Morgan maintain a bullish stance. Speaking about ETF developments, Garlinghouse stated, “It’s happening again.”
Though the uncertainty is high, the Canary Capital move has re-ignited hope that sooner or later, an XRP ETF is imminent.
XRP’s Price Outlook and Market Forecast
As of this writing, XRP is up 1.02% in the past 24 hours to $0.5309. However, trading volume decreased by 15% to $845 million. Investor sentiment remains cautious due to ongoing legal proceedings despite experiencing fluctuations, including a brief spike above $0.66 recently.
Coinglass’s on-chain metric suggests that XRP may benefit from a temporary correction. The data shows XRP’s long-to-short ratio trades at 0.9, the lowest level in one month. This ratio below one indicates pessimistic market sentiments as more traders are betting on the asset price to fall.
The Relative Strength Index (RSI) indicator on the daily chart also trades below its neutral level of 50. This indicates bearish momentum and a continuing downward trend is likely. Despite this bearish outlook and the SEC’s latest actions, market analysts project a potential XRP price rally to $3 by Christmas.