XRP OI Skyrockets 13.28%: Something Big Coming?

by

As an analyst with over a decade of experience in the financial market, I must admit that the recent surge in XRP Open Interest and trading volume has piqued my interest. The 13.3% increase in Open Interest to $3.77 billion is a significant move, suggesting increased institutional involvement. However, it’s important to remember that while the price skyrocketed to $2.53, a correction followed soon after, indicating potential market volatility.

On Dec. 14, XRP, the third-biggest cryptocurrency, showed a major spike in a crucial indicator.

XRP Open Interest (OI) has soared 13.3% to $3.77 billion, according to data provided by CoinGlass.

The Open Interest data helps measure the total number of outstanding derivatives contracts on the market, giving actual insights into how exposed traders are to an asset.

The trade volume for XRP climbed by 8.87%, reaching an impressive $12.83 billion. Its value peaked at $2.53, only to drop back down shortly thereafter. As I write this, the current trading price of XRP stands at $2.46.

Will XRP ETFs launch soon?

Interest in the digital currency has grown further because of the buzz generated by potential Exchange-Traded Funds (ETFs) focused on XRP, such as those proposed by Bitwise and Canary Capital. According to U.Today, these companies have already presented multiple ETF product ideas.

The head of BlackRock’s ETF department has debunked the recent speculations on the firm’s plans to file for an XRP ETF.

Experts predict that regulatory bodies in the United States, including the Securities and Exchange Commission (SEC), will likely approve exchange-traded funds (ETFs) such as Solana (SOL) and Ripple (XRP) before the end of the coming year.

According to U.Today, toward the end of November, investment firm WisdomTree officially filed documents for a XRP exchange-traded fund (ETF). Similarly, throughout this year, other financial managers like Bitwise, 21Shares, and Canary Capital have also filed for such funds.

Ripple v. SEC

On Tuesday, the RLUSD stablecoin received formal approval from the New York State Department of Financial Services (NYDFS), marking a significant milestone.

Ripple gains approval to make RLUSD available to the general public, signifying a substantial move into New York’s supervised digital finance industry and reinforcing its role within the stablecoin sector. RLUSD offers a U.S.-governed option to Tether’s $130 billion USDT, which presently leads the stablecoin market.

Ripple’s action occurs in a timeframe where competition is intensifying, as businesses such as PayPal are also investing efforts into creating stablecoins to tap into this profitable market niche. The U.S. Court of Appeals for the Second Circuit has instructed the Securities and Exchange Commission (SEC) to submit their final arguments by January 15th. Once these arguments have been presented, the court will evaluate motions to either dismiss or advance parts of the case.

Back in December 2020, the Securities and Exchange Commission (SEC) brought a lawsuit against Ripple, claiming that Ripple’s selling of XRP was an unregistered sale of securities. Contrarily, Ripple maintains that XRP should be categorized as a digital currency rather than a security.

As a researcher delving into the intricacies of the cryptocurrency world, I can’t stress enough the significance of this classification we’re dealing with. A decision against Ripple could pave the way for future regulatory rulings, subtly altering the legal landscape not just for Ripple, but for the entire crypto sector as well. It’s a critical juncture that could reshape our understanding and experience of digital currencies in the near future.

Read More

2024-12-14 14:03