Monica Long Champions XRP ETFs in Regulatory and Market Landscape

Monica Long Advocates for XRP ETFs

Ripple President Monica Long has been vocal about the need for Exchange Traded Funds (ETFs) centered around XRP, stressing that the cryptocurrency’s regulatory clarity and consistent trading volumes make it a suitable candidate. Highlighting a very specific legal landscape, Long pointed out that XRP and Bitcoin stand out amongst cryptocurrencies in the United States due to clear regulatory rulings. She referenced the landmark July 2023 court decision which confirmed that XRP does not qualify as a security.

Further, Long underscored the importance of XRP’s trading activity. Since its inception, XRP has consistently been one of the top-traded cryptocurrencies, consistently maintaining its position within the top ten digital assets by market capitalization. On major exchanges such as Coinbase and Kraken, XRP is frequently within the top five in terms of daily trading volume. These attributes, Long argues, create a strong foundation for ETFs, facilitating potential growth in institutional adoption.

Institutional Interest and Legal Landscape

Launching ETFs that link to altcoins such as XRP and Solana involves overcoming significant hurdles. A major prerequisite is the development of a futures market for these assets regulated by the Commodity Futures Trading Commission (CFTC). Long’s advocacy aligns with growing institutional interest in cryptocurrencies, as firms are increasingly seeking structured financial instruments and derivatives linked to digital assets.

Recent judicial rulings have also played a pivotal role in shaping this advocacy. District Judge Amy Berman Jackson’s agreement with Judge Torres’ decision on XRP, along with her outright dismissal of the Securities and Exchange Commission’s arguments in the Binance versus SEC case, have strengthened the legal standing of cryptocurrencies within the U.S. legal system. Such victories are instrumental for Ripple and can catalyze the introduction of institutional-grade products like ETFs.

Ripple’s Initiatives and Market Response

Ripple has been proactive in innovating within the financial technology space. Collaborating with Archax, Ripple is working on tokenizing real-world assets (RWAs) on the XRP Ledger, a move that has caught the eye of major financial entities including BlackRock and JPMorgan. Additionally, Ripple’s rollout of RLUSD, a stablecoin, is geared towards supplementing rather than competing with XRP, promoting both decentralized finance (DeFi) applications and greater institutional participation.

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Despite these advancements, the immediate market response to Ripple’s movements has been tempered. XRP’s market price has shown little dynamism, trading around $0.473 with thinning trading volumes and dwindling interest from smaller investors. Experts argue that while enthusiasm from Ripple’s leadership is palpable, the realization of altcoin ETFs, including those for XRP, is a few years away, with predictions pushing potential launches to 2025 or 2026. However, should an XRP ETF launch amidst strong demand, it could engender a significant price appreciation, possibly lifting XRP’s value by 20% by mid-2024 and potentially reaching the $1 mark by the end of the year.