- XRP liquidity is poised to reach record highs with multiple ETPs expected to hit the European market next month.
- These products point to a growing institutional demand for the digital asset, a major driver for long-term price increases.
The XRP community is anticipating a huge rise in XRP liquidity beginning next month. In a recent video, prominent YouTuber Zach Rector pointed out to the community that multiple XRP Exchange-traded products (ETPs), are poised to hit the European market in the coming month. These products lead to increased liquidity and signify institutional demand which could be a major driver for a price rally over the coming weeks.
As CNF earlier reported, one of those XRP ETPs will be launched by technology firm DeFi Technology. The XRP ETP launch aligns with a global trend towards integrating digital assets into traditional financial markets, suggesting a potential surge in XRP’s price.
Increased XRP liquidity is a positive for the network, providing easier access for institutional and retail investors. This will be key in traditional exchanges, increasing trading volume and exposure. ETPs further offer a regulated investment avenue into XRP. This will undoubtedly attract a flush of new retail and institutional investors. Furthermore, trading on mainstream avenues and offered by traditional firms, ETPs will call attention to XRP, leading to new exposure and potential investment in the future.
XRP ETPs to Attract Institutional Investors
YouTuber Rector who highlighted some of these benefits went on to highlight some of the existing ETPs. One of the most notable is the 21Shares Ripple XRP ETP with the ticker AXRP launched four years ago. The analyst explains that the product is available as a regular stock on a traditional exchange. Tracking investment in XRP, it has more than $49 million in assets under management (AUM)with a more than 69 percent year-to-date (YTD ) return.
Rector also discussed German-based crypto ETP issuer ETC Group which has its XRP investment product. Dubbed the ETC Group Physical XRP (GXRP), the product has a 100 percent physical XRP backing.
XRP Products targeting institutional investors come as no surprise with interest on a fast rise. A Basel Committee on Banking Supervision (BCBS) report highlighted XRP as a top investment choice among banks.
Read More: Billion-Dollar Banks Place Their Bets: Ripple’s XRP Emerges as Top Investment
The XRP community is further looking forward to the approval of an XRP spot ETF in the U.S. For now, the entire crypto community is eagerly awaiting the approval of the Bitcoin Spot ETF. Once approved, analysts expect a foray of approvals of altcoin ETFs, starting with Ethereum and XRP.
In anticipation of an uptick, XRP is already in high demand and posting positive performances. In the last 24 hours, the digital asset has surged by nearly 4 percent to trade at $0.615425. The surge helps reverse recent drops influenced by legal actions taken against the world’s largest crypto exchange, Binance.
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