What happened?
The price of XRP stands at $2.81, having slipped 1.3% in the last 24 hours. This has given the token a market capitalization of $167.35 billion, making it the fourth-largest cryptocurrency. Speculation around what could drive its next major rally is on the rise, with one possibility being an XRP-linked ETF. The upcoming ‘Swell Conference 2025’ by Ripple has further fuelled this speculation due to BlackRock’s confirmed involvement.
Who does this affect?
This event primarily affects XRP holders and potential investors interested in the cryptocurrency. Moreover, it may also impact other stakeholders in the cryptocurrency market, including other digital asset investors and companies like BlackRock. If an ETF tied to XRP gets approved, it could also affect traditional financial institutions and their strategies regarding cryptocurrency investments.
Why does this matter?
The potential introduction of an XRP-linked ETF matters for the market as it could trigger a significant rally similar to what Bitcoin experienced, where institutional inflows caused a more than 60% gain. Furthermore, Ripple’s conclusion of its lengthy legal battle with the SEC could pave the way for new institutional products, influencing overall market dynamics. Therefore, the development of XRP and its associated investment vehicles could have a profound impact on the broader cryptocurrency market.