XRP Price Surge Amid ETF Listings and US Legislative Developments
By: Eliza Bennet
The prospect of XRP exchange-traded funds (ETFs) coming closer to launch has invigorated the cryptocurrency market, highlighting significant events that could shape the future of XRP as a financial asset. Recently, the Depository Trust & Clearing Corporation (DTCC) listed five spot XRP ETFs on its active and pre-launch list. This inclusion in DTCC's public database has triggered optimism within the crypto community, suggesting that XRP ETFs might follow the precedent set by Bitcoin and Ethereum ETFs earlier this year.
The DTCC's listing is a crucial step in the ETF approval process, serving as the nexus between Wall Street and digital assets. As the central settlement and clearing utility for U.S. securities markets, the DTCC processed over $3.7 quadrillion in transactions last year. However, such a listing doesn't guarantee that these ETFs are approvable or ready for trade; it signifies merely that all preparatory steps, including ticker creation and ticker registration, have been completed, pending approval from the U.S. Securities and Exchange Commission (SEC).
The steps leading up to the potential launch of XRP ETFs were reminiscent of the process for Bitcoin and Ethereum ETFs, which saw their markets react positively even before official launches. XRP's potential approval could ease market access for institutional investors previously barred from directly acquiring cryptocurrencies, smoothing transaction processes for brokers and asset managers alike. This would also bolster XRP's status as a regulated investment vehicle, more closely entwining its performance with the U.S. financial system.
Concurrently, a separate but related event is impacting the XRP market: a breakthrough in U.S. legislative activity. The end of the longest-ever U.S. government shutdown, following a budget deal in the Senate, injected positive sentiment across various markets, including crypto. The anticipation that governmental framework would support, rather than hinder, market dynamics further fueled the rally in XRP prices. Consequently, XRP surged approximately 12% in value within 24 hours of these developments.
For XRP investors and market observers, the focal point now is whether the "pre-launch" label in the DTCC database transform into "live." Although the SEC has yet to formally approve any XRP ETF filing, market participants are betting on eventual regulatory clarity, anticipated after Ripple’s partial court victory last year that classified programmatic XRP sales as non-securities. Until the ETFs achieve finalized approval, XRP's market potential continues to hold significant promise for evolving investment landscapes.
