Crypto influencer Jack The Rippler thinks investment giant Fidelity could launch a spot Ripple (XRP) Exchange-Traded Fund (ETF) shortly. He revealed a screenshot showing the AMUN Ripple AXRP ETF on Fidelity’s trading platform.
His finding was corroborated by another influencer, Crypto_Barbie, who captured the web address of the ETF’s trading page. The share price of the exchange-traded product is yet unknown.
Ripple ETF News Could Spike Price
X user XRP Whale predicts that Fidelity could apply for the exchange-traded product by April. They could potentially receive an approval by the end of 2024.
Predictions of an XRP ETF come as most of the attention in crypto focuses on a potential spot Bitcoin ETF ruling this week. Fidelity is one of the firms hoping for approval of its Bitcoin ETF product. An approval could open the door for ETFs tracking the prices of other crypto assets, including XRP.
Read more: How To Buy XRP and Everything You Need To Know
Last year, news of a fake XRP ETF filing by BlackRock spiked the asset’s price by 10%. The Relative Strength Index of XRP is 34.83, meaning it is equally poised for bullish or bearish price action.
XRP ETF Applications Could Reopen XRP vs SEC
In the meantime, analysts predict that a spot Bitcoin ETF approval could add $1.5 trillion to the crypto market cap. Approved Bitcoin ETFs could see $5 billion in inflows in the first quarter and $10 billion in the second quarter. Gautam Chhugani and Mahika Sapra, analysts at AllianceBernstein, said last Tuesday,
“We expect 2024 to be a breakout inflection year for crypto,” Sapra and Chhugani added.
The approval of ETFs will also benefit the broader crypto markets. Altcoins Solana, Bitcoin, XRP, and Ethereum have added $800 billion to their market cap since Bitcoin rebounded from its 2022 lows. Adam Berker of payments firm Mercuryo said ETF approvals would make crypto accessible.
“If the [spot bitcoin ETF] approval does come to pass, it will be a positive decision for the industry. Investing in crypto will become more accessible, causing an influx of funds into this market. There is a lot of interest towards this financial instrument, and it is clearly visible,” Berker reiterated.
The approvals will also inform companies interested in filing ETFs for other crypto assets. The US Securities and Exchange Commission (SEC) has delayed ruling on applications for spot Ethereum ETFs by ARK Invest and VanEck.
However, an application to launch a spot XRP fund might raise questions about whether the asset’s price could be manipulated. The SEC may also want to avoid admitting further defeat after losing a court case to Ripple Labs last year. A judge ruled that XRP was only a security when used to raise funds from institutional investors.
Read more: Everything You Need To Know About Ripple vs SEC
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