Donald Trump’s decision to include XRP ($2.34) among the five cryptocurrencies in his national crypto reserve bodes well for its price.
Or so say analysts, who added that it also paves the way for the smattering of exchange-traded fund applications making their way through the Securities and Exchange Commission.
“The inclusion of XRP in a crypto reserve represents a significant endorsement, marking a huge shift from the days when XRP was in the firing line of federal agencies,” Jonathan de Wet, Zerocap’s chief investment officer, told DL News.
Several XRP ETF applications have been acknowledged by the SEC, which kick-started the agency’s review process. The market watchdog has until mid-October to reject or give ‘em a thumbs up.
JPMorgan estimates that XRP ETFs will see inflows of about $8 billion within their first year of trading.
Drivers
A court win and the pro-industry environment have fuelled the Ripple-linked cryptocurrency’s price to surge by almost 270% over the past year to become the third most valuable after Bitcoin and Ethereum.
Inclusion in the potential digital asset stockpile alongside Bitcoin, Ethereum, Solana, and Cardano will likely keep affecting the price, analysts said.
To be sure, Luke Nolan, a research associate at investment company CoinShares, cautioned that while all cryptocurrencies included in Trump’s Truth Social post on Sunday pumped after the news, they’ve already slumped back.
“What has already become increasingly clear is that the market may have gotten ahead of itself,” he told DL News. He said that the suggested reserve still doesn’t have “a realistic timeline or the viability” for when it will be created.
Nolan added that any plans to launch a crypto reserve will likely have to pass through Congress and will “unlikely” look exactly as proposed.
Yet, he and other analysts we’ve spoken with agree that if the SEC approves XRP ETF applications could prove bullish for XRP.
“Despite some uncertainty, the implications for a favourable regulatory environment around XRP are growing markedly by the day and — in the absence of any tail events — should keep its price buoyant above $2.00,” de Wet said.
XRP currently trades at $2.35.
Eric Johansson is DL News’ News Editor. Got a tip? Email at [email protected]. creator solana token
