Ripple’s President, Monica Long, has expressed strong confidence in the upcoming approval of a spot XRP exchange-traded fund (ETF) in the United States. This optimism is bolstered by a favorable shift in the regulatory environment for cryptocurrencies, with several asset managers submitting applications for XRP ETFs.
Regulatory Environment and XRP ETF Approval
Long believes that XRP is likely to receive regulatory approval similar to that of Bitcoin and Ethereum. This indicates a growing acceptance of cryptocurrency investment vehicles, which is crucial for the market’s evolution. She noted the rising interest in crypto ETFs and suggested that the current administration’s supportive stance towards digital assets could accelerate the approval process.
The anticipation for the XRP ETF is heightened, especially since the U.S. Securities and Exchange Commission (SEC) has yet to decide on multiple applications from various firms, including one from Bitwise that was filed in October. The potential approval of these ETFs could significantly impact the market, particularly as XRP has experienced a remarkable price increase of over 350% since the recent election cycle.
Ripple’s RLUSD Stablecoin
In addition to the XRP ETF discussion, Long shared insights about Ripple’s new RLUSD stablecoin, which she believes is set for major adoption soon. Currently, RLUSD is available on platforms like Bitso, MoonPay, and CoinMina, with plans for wider distribution on larger U.S.-based exchanges such as Coinbase.
Long emphasized Ripple’s commitment to enhancing RLUSD’s availability, indicating that more announcements regarding its distribution are forthcoming. The stablecoin market is gaining traction, and Long described stablecoins as vital tools for facilitating crypto trading and payments. She anticipates that demand for stablecoins will grow alongside the overall expansion of the cryptocurrency landscape.
Growth of Ripple’s Payments Business
Long also highlighted the impressive growth of Ripple’s payments business, which reportedly doubled last year. This reflects strong institutional and corporate demand for its solutions, showcasing a broader trend within the financial sector. Traditional institutions are increasingly seeking to incorporate blockchain technology and digital assets into their operations.
Long noted that Ripple has secured more local deals in the last six weeks of 2024 than in the previous six months. This suggests a robust pipeline of business opportunities, positioning Ripple for significant growth in the near future. The favorable regulatory environment, combined with the growing acceptance of cryptocurrencies by mainstream financial institutions, further supports this outlook.
Institutional Interest and Market Impact
As the cryptocurrency market evolves, the potential approval of various crypto ETFs, including XRP, could act as a catalyst for further institutional investment. Long’s insights into the regulatory landscape indicate that momentum for crypto ETFs is building, with Ripple leading this movement.
The anticipated approval of these investment vehicles could enhance market liquidity and provide a more accessible entry point for traditional investors looking to diversify their portfolios with digital assets. Speculation surrounding a crypto-friendly administration has also fueled optimism regarding ETF approvals, which could solidify XRP’s status as a leading cryptocurrency.
As demand for digital assets continues to rise, the role of ETFs in facilitating investment in cryptocurrencies is likely to become increasingly significant. This development paves the way for a new era of financial innovation, transforming the landscape of investment opportunities.
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