The launch of the first spot exchange-traded fund (ETF) linked to XRP could also favor a bullish XRP price prediction, as it has received $70 million in inflows just a few days after its launch.
This is the third altcoin-linked product listed by REX-Osprey. Combined with the other two, linked to Dogecoin (DOGE) and Solana (SOL), they have brought in more than $400 million in assets, reflecting the market’s interest in altcoins beyond Ethereum (ETH).
The U.S. Securities and Exchange Commission (SEC) has now expedited the road for other spot listings linked to cryptocurrencies to get listed in the country’s public markets, as they can now make a decision solely based on their S-1 prospectuses.
This should reduce the regulatory delays that asset management firms experienced in the past few years to get these investment funds out there. As a result, both retail and institutional adoption could skyrocket in the next few years.
On the other hand, Ripple’s ecosystem has been growing steadily. The blockchain project recently signed an agreement with Securitize to serve as the liquidity provider via its Ripple USD (RLUSD) stablecoin.
This means that all redemptions processed for BlackRock’s $2 billion BUIDL fund will be processed via RLUSD payments.
This stable asset has seen its market cap increase from $50 million to nearly $800 million at the time of writing, and its focus on serving enterprise clients could soon push it to the top 10 in the stablecoin market.
All of this translates into higher trading activity within the XRP Ledger, which means higher demand for XRP as the network’s utility token used to pay for gas fees.
The daily chart shows that XRP bounced strongly off the $2.7 support last week as we predicted. This resulted in a four-day winning streak that confirmed the existence of enough demand at that level to propel the price to a higher high.
