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- Garlinghouse said the ETF would be a good fit for the XRP community.
- XRP whale holdings have declined sharply over the past month.
These days, the cryptocurrency market has been buzzing with all kinds of ‘ETFs’. As spot Bitcoin (BTC) ETFs surge in popularity, the prospect of investing funds linked to other major tokens is gaining attention.
Is an XRP ETF possible?
As this story unfolds, Ripple (XRP) CEO Brad Garlinghouse welcomes the possibility of an XRP ETF. “We think this has implications for the entire XRP community,” the CEO said. Bloomberg TV.
Asked about possible negotiations with asset management giant BlackRock, Garlinghouse declined to comment.
Around mid-November 2023, fake news about the launch of BlackRock’s XRP ETF caused the price of the coin to surge 12%, clearing millions of dollars from the futures market.
That said, the approval coming straight from the horse’s mouth will certainly strengthen the spirit of the XRP community.
Time for a reality check
Discussions about an XRP ETF have been going on for some time. In fact, last month Ripple posted a job description saying the company was looking for resources to “drive cryptocurrency-related ETF initiatives.”
But industry experts have expressed concern about this possibility. Fox Business journalist Eleanor Terrett argued that before an XRP spot ETF can be launched, a futures ETF must be in place first.
XRP fails to get excited
Meanwhile, according to CoinMarketCap, XRP was in the red, down 4.85% in 24 hours at the time of press.
The sixth-largest cryptocurrency’s slump has been going on for some time. At the time of this writing, XRP was the only major asset with a monthly loss rate of more than 1%.
The negative price action was enough to attract the attention of wealthy investors. According to AMBCrypto’s analysis of Santiment data, address holdings for the 10-10 million cohort declined sharply over the month. This suggests that whales are not very keen on accumulating XRP at this stage.
Source: Santiment
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Additionally, the number of bearish bets taken by XRP derivatives traders has increased over the past 24 hours, according to Coinglass’ Long/Short ratio. This added credence to the market’s bullish sentiment.
Source: Coinglass