XRP Sees 1.04% Increase with ETH-Spot ETF Hopes and Political Shifts in Focus
- XRP increased by 1.04%, closing at $0.5337, with spot market trading volume rising by 30% to $794 million.
- Republican support for cryptocurrencies and the approval for ETH-spot ETFs.
XRP advanced by 1.04% on Monday the 27th May 2024, closing at $0.5337, partially recovering from Sunday loss. Over the past 24 hours, the spot market trading volume of XRP increased by 30%, reaching $794 million. Concurrently, XRP derivatives trading, particularly perpetual futures, grew by 11.29% to $608.21 million, according to data by CoinGlass.
While there was no news directly related to the ongoing SEC vs. Ripple case, broader market trends and political developments influenced investor sentiment.
Republican Crypto Support Fuels Optimism for Regulatory Changes
The prospect of an ETH-spot ETF market has influenced XRP Positively. With speculation about an XRP-spot ETF gaining traction, investors are closely watching developments in the crypto market. The launch of the first ETH-spot ETFs could set a precedent, potentially leading to similar financial products for XRP.
Republican Party support for cryptocurrencies has been a significant factor in the changing regulatory landscape. Donald Trump, the Republican front-runner, has voiced strong support for cryptocurrencies, emphasizing the need for the US to lead in this sector. This stance might pressure the current administration to reconsider its position on cryptocurrencies.
The #StandWithCrypto campaign by Coinbase has highlighted the substantial number of American crypto owners, which could influence political decisions.
The push for a more crypto-friendly regulatory environment could accelerate the development of a crypto-spot ETF market. If the SEC is influenced to change its stance on ETH-spot ETFs, it might face similar pressures regarding XRP-spot ETFs. Issuers are likely to seize any regulatory openings to apply for these financial products.
Ongoing SEC vs. Crypto Cases
The SEC’s ongoing cases against major crypto entities remain critical. The agency’s appeal against the ruling on Programmatic Sales of XRP and the SEC vs. Coinbase case is particularly significant. The outcome of these cases could shape the future of the crypto-spot ETF market. If the courts uphold the favorable ruling on XRP and grant Coinbase’s Motion to Dismiss, it could open the floodgates for crypto-spot ETFs.
A Republican victory in the upcoming November elections could further pave the way for an XRP-spot ETF market. A crypto-friendly administration might expedite regulatory approvals and foster a more supportive environment for cryptocurrencies.
Trading Activity Surges
The significant increase in XRP trading volumes highlights a growing interest among market participants. This spike in trading activity coincides with XRP nearing the $30 billion market capitalization milestone, currently standing at $29.32 billion. XRP is now only 2.26% shy of crossing this significant threshold.
Market analysts attribute the rise in trading volumes to several factors, including increased investor confidence and positive market sentiment. The ratio of market capitalization to trading volume is currently at 4.66%, which is considered a normal range, suggesting healthy market activity.
