Despite the pessimism surrounding previous XRP ETF discussions, Canary Capital has reignited expectations for the product. In the long run, XRP could benefit on price once this product is launched.
Market experts continue to weigh the prospects for XRP exchange-traded funds (ETFs) in the United States. Speculation regarding XRP ETF approval was widespread after Bitcoin and Ethereum spot ETF products debuted on the US market.
Canary Capital ignites XRP ETF launch
Despite the uncertainty, Canary Capital has sparked recent buzz and optimism surrounding the launch of its XRP ETF.
As discussed by CNF, Canary Capital, a relatively new crypto investment company, has filed for an XRP ETF with the U.S. Securities and Exchange Commission (SEC). The company’s filing follows a similar move made by asset manager Bitwise last week, CNF reported.
One of the market experts weighing in on the XRP ETF launch discussion is Nate Geraci, president of ETF Store. Geraci expressed optimism and predicted that approval was likely.
“It’s not a matter of if it’s approved, it’s a matter of when,” Geraci says.
However, he emphasized that the approval of the XRP ETF will largely depend on the U.S. political environment. Geraci believes that a change in the US president or the SEC administration could be important for the advancement of XRP’s ETF.
The crypto community has been increasingly critical of SEC Chairman Gary Gensler, with many believing his regulatory efforts have gone too far. On the other hand, former US President Donald Trump’s renewed focus on cryptocurrencies continues to attract attention. Some investors hope his possible return will spur innovation in digital assets.
However, other investors are concerned that the SEC’s recent appeal in the Ripple case could prolong the approval of the XRP ETF. In a previous update covered by CNF, Ripple CLO Stuart Alderroti hinted at the possibility of a cross-appeal, adding to market uncertainty.
Still, Ripple CEO Brad Garlinghouse and pro-XRP lawyer Bill Morgan remain bullish. “It’s happening again,” Garlinghouse said of ETF trends.
Despite the high degree of uncertainty, Canary Capital’s move has reignited hopes that an XRP ETF is imminent sooner rather than later.
XRP price outlook and market forecast
As of this writing, XRP is up 1.02% in the past 24 hours to $0.5309. However, trading volume fell 15% to $845 million. Despite some fluctuations, including a recent spike above $0.66, investor sentiment remains cautious as the legal proceedings are ongoing.
Coinglass’ on-chain indicators suggest that XRP could benefit from a temporary correction. According to the data, XRP’s long-short ratio is trading at 0.9, its lowest level in a month. A ratio below 1 indicates a pessimistic sentiment in the market as more traders are betting on a decline in asset prices.
The Relative Strength Index (RSI) indicator on the daily chart is also below the neutral level of 50. This indicates bearish momentum and indicates that the downtrend is likely to continue. Despite this bearish outlook and the SEC’s latest actions, market analysts predict that XRP price could rise to $3 by Christmas.
